533,000 Jobs Lost

Nonfarm payrolls plunged by 533,000 in November. This was the biggest loss of jobs since December 1974.

The unemployment rate rose to 6.7%, a 15-year high.

Though far worse than expected, the numbers are not completely surprising given the terrible ISM data released earlier this week.

The economy is clearly in a recession and things will get worse before they get better. The economy will get better, however. It's a matter of when, not if.

In the meantime, investors need to remain proactive in managing their investments and not take unnecessary risks.

Those of you who made quick money trading KB Home (KBH - Snapshot Report), Toll Brothers (TOL - Snapshot Report), D.R. Horton (DHI - Analyst Report) or other homebuilders over the past 2 weeks should consider locking in profits. People who are worried about losing their jobs won't buy new homes, regardless of how low mortgage rates go.

Similarly, don't be fooled by the Thanksgiving weekend retail sales numbers. Retailers are going to keep discounting while consumers' penchant for spending will decline. I would particularly be wary of luxury retailers such as Nordstrom, Inc. (JWN - Snapshot Report).

Rather, look at stocks that are less sensitive to the economy. In the Focus List, we have been targeting medical, defense and consumer staples stocks. Our more recent additions include Axsys Technologies (AXYS) and Church & Dwight (CHD - Snapshot Report).

Also, consider dollar cost averaging. Doing so will minimize your timing risk.

Read the full analyst report on DHI

Read the full analyst report on JWN