Employment Numbers Disappoint: A Reality Check on Post-2020 Job Rehiring

2024-10-07

This week marks the start of earnings season for Q; the 2024 Election and the next FOMC Meeting also add volatility to markets. Friday’s Jobs report came in stronger than expected (leaving one to wonder what kind of revision to the numbers is to come). Within the report, 700k gubernment workers were added. The S&P on Friday rallied on the employment news, but that also pretty much killed any chance of a 50bps rate cut by the Fed. Markets are now in a consolidation period, setting up for a corrective cycle a head of the 2024 Election. Lance explains the bullish and bearish takes of technical analysis: Knowing when to put capital to work, and when to take it off the table. What will the market do next? Reviewing market psychology: What’s moving prices? When moving averages converge and

2024-10-03

A preview of tomorrow”s employment report an the phenomenon of "labor hoarding;" a weaker jobs report will not necessarily be recessionary. Markest are retesting support, and if it cannot hold, will trigger a sell signal. Lance’s FEMA rant & JOLTS preview w Michael Lebowitz; the labor market is behaving like the housing market: no one is doing anything. What will the Fed do in response to poor jobs numbers? Interestingly, QT is conspicuously absent from latest Fed discussion notes. Market Breadth continues to soar. You can’t make this up: Hurricane (James T.) Kirk: this wlll be comedy gold! Market breadth in an everything market: Too much money chasing too few stocks. lance & Michael discuss the problem of asset selection vs ETF’s.

3:06 – Why a Weaker Jobs Report is Not Recessionary

2024-09-30

The last day of September brings the end of the month, end of the quarter, and a preview of the next round of corporate earnings. So far, no evidence of recession is appearing. Regardless of your investment thesis, money flow still matters most, and there’s lots of money flowing into markets. China is most over-bought in years, thanks to Chinese government stimulus. Earnings outlooks will matter going forward. Oil prices are getting thrashed, with lots of short-selling over the last five weeks. Lance shares dog tales of Gunner & Sniper. With massive money inflows, liquidity is primary market driver. Lance discusses the components of our Greed/Fear Index; markets’ pricing is based on earnings. The two measures of consumer confidence; The Conference Board and U. of Michigan; Consumer

2024-08-02

Economist Claudia Sahm developed the “Sahm Rule,” which states that the economy is in recession when the unemployment rate’s three-month average is a half percentage point above its 12-month low. As shown, the latest employment report has triggered that indicator.

So, does this mean a recession is imminent? Maybe. However, we can now add this indicator to the long list of other recessionary indicators, also flashing warning signs.

As discussed in “Conference Board Scraps Its Recession Call,” the Leading Economic Index (LEI) has a long history of accurately predicting recession outcomes. As we showed, each previous decline in the 6-month rate of change in the LEI from the Conference Board has aligned with a recession. We are currently in one of the most extended periods on record

2024-07-30

Earnings season continues with 39% of S&P reporting this week; by week’s end, 79% of companies will have shared results…and the buy back window opens anew. The Fed meeting begins today, with a slim chance for a surprise rate cut; a more dovish tone will encourage markets, however, and anticipate rate cut by September. Commentary on markets’ 3% correction & Japanese Yen carry trade effects. Addressing the correct response to correction: Average returns are not the norm; risk on/off behaviors. Anchoring life events: What’s the best anchoring for portfolios? Lance and Jon discuss a common mistake investors make when evaluating their portfolio performance, and explains why comparing your returns to the overall market is not always the best approach: The worst thing investors do is compare

2024-07-26

Rich & Danny recap Danny’s recent accident; Rich’s market summary includes a preview of today’s PCE release. Markets are awaiting confirmation of a trend. Dealing with the election fallout on your money; markets have already priced-in everything you know. PCE will move markets today; there is still $500-billion in unspent government funds from the Inflation Reduction Act. Dealing with data breaches. Retirees’ biggest worry is about income: What is the biggest source of income for most Americans? Their house & home equity…and SS, a forced pension. Benefits of a HELOC–get one early, and don’t touch it. The best use of "buffer assets." Thinking of HELOC’s and reverse mortgages as "unfreezing" liquidity in the frozen asset of your home. Retiremnent is about depleting assets; you’re no

2024-05-22

Remember the.com crash? Many young investors today never experienced a financial crisis like 2008. It’s important to learn from history to navigate market uncertainties. #financialcrisis #investing

The dot-com crash was a pivotal moment in financial history, but its impact is often forgotten. Join Lance Roberts as he revisits this era and discusses its relevance to today’s market.
– The gradual decline of the dot-com crash
– Opportunities for risk reduction during the crash
– The long duration of the market downturn
– The lack of recession experience among modern investors
– The post-2008 market perception by new traders and writers

➢ Listen daily on Apple Podcasts:
https://podcasts.apple.com/us/podcast/the-real-investment-show-podcast/id1271435757

➢ Watch Live Mon-Fri, 6a-7a

2024-05-16

Markets hit all-time highs with softer CPI: The biggest contributor was decline in Homeowners’ Equivalent Rent. Markets are now anticipating two rate cuts this year. Consumers are showing signs of weakening; hardest hit are Gen-Z & Millennials. Stocks & Bonds rally on weaker CPI; markets are extremely over bought. Look for a re-test of the 50-DMA with market corrective action anticipated. WalMart has decent earnings; consumer spending is what drives the economy. Quality of Employment numbers matter: Full Time vs Part Time Jobs; Why the Government’s Employment formula is bogus. How we calculate Inflation now (also bogus). The Risk is never zero. Answering emails: When will the market crash? Being out of the market; more money is lost trying to avoid a crash than is lost during a crash.