Psalms 23:1-6 – “(A Psalm of David.) The LORD Yahweh is my shepherd; I shall not want”
Too Many People Working And Inflation Not High Enough
Less jobs, slower Services and Manufacturing sector growth, sticky prices (ISM), and surging gasoline costs (thank you OPEC). We have too many people working and inflation is not high enough!
After a bloodbath in bond-land this week, today’s ugly jobs data sparked a bond-buying-panic.
No-one should be surprised by this purge in yields. Rate-hike expectations tumbled.
On the stock side, AMZN and AAPL were the big movers.
The S&P plunged to 3-week lows. Like I said, too many people working!
Back to bonds, the yield curve surged this week (2s30s steeper for the 9th straight day).
The reversal in the USD happened right at the pre-Payrolls dump level from July.
Crypto continues to tread water with BTC hovering around $29k.
Gold rallied on the day as the dollar sank but overall was lower for the second week in a row.
Which is a very bad thing for those who believed The Fed has beaten inflation – Pump prices are about to explode.
Conclusion
In other words, it’s all priced-in. The beatings will continue until moral improves comes to mind here.
Fewer jobs, market 80% less than where it is, and inflation will keep going up on things such as housing, fuel, and food.
It is war on our own people.
Oil spiked over $83 and then settled back to $82.64. Pump prices are already up 60 cents in my area.
The yield curve is meaningless nowadays because of the NY Fed/PPT buying stocks and bonds covertly.
US equities have gone up and will continue to go up due to capital flight from Europe, which has barely begun.
The problem is, the market reaction this time isn’t nearly the same. The markets are getting wise to the trick.
Fools and their money are soon parted.
As always, keep Yahweh first, stay free, pay down your debt and prepare. Shalom.
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