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There’s NO reason for our stock market to be at the levels it is at. The Earnings stink out loud. The global economy is in recession. And I back that up with reports like Friday’s jobs report. I don’t know how long they can keep the plates spinning, but in my view, selling stocks and buying more gold and silver wouldn’t be a bad idea. But hey…I could be nuts. Maybe trees do grow to the moon, and unicorns are real. Maybe the Fed’s can keep the market up despite anything and everything negative. I’m just siding with Mother Nature. Gravity always seems to work and one day, it will pull stocks down to where they belong. Fed’s or no Feds. Be cautious out there.
This is a part of what I said to my insiders on Friday morning shortly after that lousy report, as the futures were falling like a rock…
“The one thing you have to keep in mind is that it is indeed a Friday and they like a green market close on Friday's. It lets them crow about how wonderful things are over the weekend TV shows”
On Friday we got the non farm payroll report, and boy…if the powers that be ever wanted to paint something to look perfect, this was their Rembrandt moment. Not only did the headline number beat the estimates of a gain of 235K by coming in at 257K; they went back and did some of the most aggressive “revisions” to prior reports that I’ve ever seen.
Let me paint the picture for you. According to our Government bean counters the last few reports have shown the most job gains in 17 years. They say that wage growth was the best since 2008, as they told us wages grew by 0.5%. The BLS did revisions to the entire year of 2014, and remember the “polar vortex” last January? They said at the time we only got 144K jobs. Now they say that looking back, it was really 247K. But that was nothing compared to what they did to November. Now they say November posted a gain of 465K jobs. That’s the most monthly gains since the tech bubble boom of the late 90’s. A time when there really were jobs galore.