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The Market Is Looking for Stabilization in the Economy

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Don't panic. 

The economy is looking for some stabilization, according to Jessica Zarzycki, responsible investing fixed income portfolio manager at Nuveen. 

"I think the market is actually really looking for some stabilization in the economy. So the uncertainty is leading to investors being a bit concerned at this point," said Zarzycki. "I think the one thing that I will look at at the jobs number from last Friday is: we'd really look at a trend versus one data point. If you look at the jobs number in January, it was extremely high, and I think that February has some idiosyncratic measures into it. I would look for a three to six month trend to really get an understanding of the U.S. economy."

"With all of the uncertainties around Brexit and U.S. trade, the market's just not ready to say whether or not we're hitting a downturn or if we're heading towards a bit more stabilization."

Related. The Number One Reason to Stay Positive About This Stock Market

And what about the debt ceiling? Is that something that investors should be paying more attention to?

"It's definitely something that investors should keep in the back of their minds. I think that we will get through the debt ceiling debate," said Zarzycki. "It would, obviously, have significant implications if it weren't to pass. But I think that there's definitely the political will to get through the debt ceiling debate and get to the other side of it."

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