Unemployment and your investments

June 6, 2008

On Friday, June 6, the Labor Department announced that unemployment has soared half a percent to 5.5% in May, the largest one-month increase in 12 years. It's no wonder, seeing the news we've had in recent days:

• On Tuesday, GM announced plans to close four pickup and SUV plants because sales have plummeted as consumers favor more fuel-efficient vehicles. The closures will effectively lay off 2,500 employees.
• On Wednesday, United Airlines said that it would cut flights and layoff up to 1,600 because of the impact of oil prices on the bottom line.
• On Thursday, Continental Airlines announced it would ground planes and eliminate about 3,000 jobs as it struggled with high fuel costs.

Yikes! It's no wonder GM and Continental both get a D grades and United gets an F in my exclusive PortfolioGrader Pro rating system. You can see how far-reaching the impact of surging crude oil prices are.

Clearly, there are some businesses that are dangerous places to invest. But there are others that are a shelter from the storm when it comes to fuel costs. Take FMC Technologies (FTI), which inked an agreement with StatoilHydro worth about $50 million to assist in energy exploration in the Norwegian Sea. Or, GulfMark Offshore (GLF), which provides transportation services to the offshore energy industry. FMC Technologies has given my Emerging Growth subscribers 155.54%, while GulfMark has turned in 44.03%!

There is money to be made in this market if you know where to invest. Join Emerging Growth today to get in-depth information on how to invest in tomorrow's market leaders!