The Obama administration's proposal to include some measure of graduates' earnings in a rating of higher education has ignited a heated debate about the purpose of an education, and in particular the value of a liberal education.
The labor market and employment situation that we face today has many facets: in addition to recovering from a global financial crisis, the economy is facing a slow recovery, resulting from a long recession.
While college completion certainly gives you a solid leg up, both in terms of jobs and earnings, it doesn't inoculate you against global wage arbitrage, accelerating labor-saving technology, and high unemployment.
Is it likely that the Dow Jones Industrial Average is flirting with five-year highs right before we are about to go into recession? The answer is obviously no, but there is another factor that has been introduced into the equation.
That investors are far from bullish may indicate more life and potential upside to this market rally. But nobody really knows. The third quarter saw quality blue chips enjoy better relative performance. As our posture remains defensive, we hope that this beneficial trend will continue.