Well, there it is. The jobs report came out, and out of 80 highly paid lifelong economic experts, 79 of them were stone cold wrong about the numbers. Great job, fellas! If you stare at this chart long and hard, you’ll gradually notice a trend starting to form in your mind. Not to put too fine a point on it, but the economy is heading for the toilet, and rate cuts from Jay ain’t gonna change that.
The absolutely pitiful report led to gold blasting higher, which means that my decision to shed gold on Wednesday was absolutely right………..for one day. Whoops!
Bonds, naturally, are mooning, since everyone knows Powell is going to have to get out his Ginsu ™ knife and slash rates in a clumsy and desperate attempt to goose the economy into a recovery that simply isn’t going to materialize.
I would have preferred the market to be in a free-fall, of course, but there are glimmers of goodness here and there, such as my old pay AMD:
And although I have no position in Tesla, it’s interesting that the news of a TRILLION dollar pay package for Elon Musk doesn’t exactly seem to be bothering the shareholders.
So, with the jobs report in the books and interest rates plunging, whatever tidbits remaining of fear in the market have utterly left the building. The “lower rates—>higher equities” narrative is alive and well.
I had dinner last night with a bunch of tastytrade folks during a very rare visit on their part to San Francisco. I’m toying with the idea of popping up there this morning for a couple of hours, but I think I want to tend to my positions for a little while before I make the journey.
