We’re back in yellow territory on the S&P 500 due to a morning selloff linked to a higher-than-expected CPI. But we still have favorable conditions in communications and energy stocks.

Sadly, the Momentum Alligator has tipped off his surfboard for now.
 

[A TERRIBLE bond auction and reported military strikes in Syria have taken this market in the opposite direction.]

Dear Fellow Expat:

What are the most desirable jobs for young Americans today?

I’m going to warn you.

It’s not too early for a Long Drink before I answer this question.

A November 2021 survey by YouGov asked teenagers 13 to 17 what their dream job is. And the answers… are something.

Young Men

• Professional Athlete: 12%

• YouTube Star: 11%

• Musician: 6%

• Professional Gamer: 6%

• Doctor: 5%

Alligator YouTube Star
 

Young Women

• Doctor/Nurse: 13%

• Actress: 11%

• Musician: 9%

• Artist: 7%

• Youtube Star: 6%

I’ll note that the young women give me much more hope than the teenage boys.

But it’s a sign that something is wrong with our focus on educating the next generation. There are few reminders of what opportunities benefit young people's pocketbooks and society.

An interesting meme notes the backwardness of the economy and society.

The jobs people look down on can pay more than six figures in blue-collar work.

The meme lists the carpenters, the electricians, the plumbers, the HVAC repairers, the Mechanics, and the welders.

The jobs that people look up to are social media influencers, actors, and athletes.

And the jobs that keep our economy alive… are all in the first bucket above…

Meanwhile, I hate to break it to the kids of the future. Still, if the government keeps printing money the way that they are, and we continue this spectacle of Modern Monetary Theory and constant blitz of new stimulus programs, not only will they be broke, but their only job options will be:

1. Ditch digger

2. The person who refills the ditch with dirt

3. The person overseeing ditch diggers and ditch fillers

4. A government job that depletes all creativity from their bones

5. Soup kitchen ticket taker.

6. Backyard vegetable garden thief

Tell them to learn math and science.

Someone… tell them.

“Undependable”

You’re wondering where this Subject Line emerged from.

It comes from a new video from Jeffrey Snider - who misspoke this morning about the current problems in the global collateral markets.

The Eurobond markets (liquidity) are drying up. That’s a problem for global equity markets looking ahead. Watch here - as this explains how collateral works in the global system - and what can go wrong fast.

But it’s also very eye-opening how incredibly complex the funding system is.

When the problems arise in our ongoing refinancing crisis looms… please know that this video explains the situation - as complex as it might feel. In a world that goes from economic turmoil to revival… and boom to bust and boom again…

This is the plumbing that will break.

State of Equity Strength

Our Equity signals are back at equilibrium this morning after the Consumer Price Index came higher than expected. The CPI for September was 3.7%, higher than the bank consensus of 3.6%.

The CPI number today showed another large increase in rent and homeowner inflation. Year-over-year, rent inflation is up 7.4%, and homeowner inflation is up 7.5%.

The worst category? This is one that I know very well. Car insurance costs are up a staggering 18.9%. As I’ve noted, almost one in five drivers in my state are uninsured, and the cost of coverage if you have an accident with an uninsured driver (even if it’s their fault), is higher than if you total your car on your own.

Car repair inflation is also in the double-digit zone.

If we look at the stuff that continues to increase - it’s the same story repeatedly. The things that matter - vehicles, housing, food, transportation, energy…

It’s all going up.

This is a cost of living crisis - and until the Fed and Congress start advocating for supply-side policies to address inflation, expect more of the same. Today, I discussed this in the Republic Risk letter and outlined the investments that will be positive for this decade based on the inflation story.

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