I had been meaning to write about this, but I got distracted by the latest bout of market volatility. With the debt ceiling problem defused, but no sign of a DACA deal, the issue of immigration is a worthwhile issue to consider for investors.

As I analyzed the latest JOLTS report and last week's January Jobs Report, I reflect upon how Trump's immigration policy may affect labor markets, and the secondary effects on monetary policy. The latest JOLTS report shows that hires remain ahead of separations, and the quits rate is rising, which are indicative of a strong labor market.



Immigration is a politicized issue and it is beyond my pay grade to express an opinion on the correct approach. Nevertheless, I can still estimate the likely effects of any policy, and its market effects.

Donald Trump's philosophy to immigration is clear. Build a Wall to keep them out. Deport the illegals, starting with the DREAMers, or DACA eligible individuals residing in the United States.

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