Friday’s jobs report underscored how difficult it will be to reduce the unemployment rate. There were 64,000 private-sector jobs created, less than half the number needed to prevent unemployment from rising. The story has been similar month after month. The economy is inching along.

Expect a second round of what’s called Quantitative Easing (QE), which means the Fed will purchase more assets (mortgages, Treasurys, etc.), expand its balance sheet and increase the money supply. That would boost bank reserves, but those are close to one trillion now so more wouldn’t have much if any effect. The economy doesn’t suffer from a lack of capital, cash and reserves. There is plenty. Liquidity is one of the factors driving the market higher.

I know, I know. There are problems such as deficits, the sinking dollar, spending run amok, Social Security and Medicare, to name a few problems. But as investors we needn’t fear problems that are well known because they are already reflected in current prices. And to the extent that the well-known problems turn out to be less severe than expected, that will become a positive.

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