Unemployment remains low
Correction: The official U3 rate of unemployment is low.
NO investor should be basing their decision-making on the U3 rate without knowing what it means, what it is made up of, how it is calculated, etc.
In the past U3 was a very good gauge to use, and a very good measurement because throught past expansions and contractions in the economic cycle, we were experiencing a steady and sustained increase in labor force participation over the long term.
It has been rendered meaningless now as anything other than something for politicians to pat themselves on the back with. The constant of increasing labor force participation has been removed, and in fact we are still in the midst of a historically unprecedented and sustained DECLINE in labor force participation, and one that is primarily driven by the WORKING AGED population (older, retirement aged Americans are actually participating at a high level compared to the past).
To put it in simple terms, remember school science projects? Remember how you need things like a constant or a control to make comparisons meaningful? With respect to U3, the constant or control, steady and/or rising labor force participation, has been removed.
Know what you're looking at. Whether you're a bull or a bear, do not base decisions on the false premise, relying on a now useless U3 measurement, that employment in the U.S. is close to "full" employment.