By Christian Drake of Hedgeye

Insular Strength:  The domestic labor market remains insularly strong with February employment holding near cycle highs despite serial storm activity, the rising drag from the energy sector, and global growth in discrete retreat.  The best run in payroll gains since the late 1990’s extended in the latest month with employment growth accelerating for a 6^th straight month, the unemployment rate approaching the Fed’s NAIRU level and employment growth across the key housing demographic of 20-34 year olds accelerating. 

Best Before the Crest:  We remain late cycle in the current expansion and the data is always best before the crest but the labor market remains the recipient of positive macroeconomic reflexivity currently and the expectations build into the Fed announcement on March 18^th will now be that much more acute.

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