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Pursuit of Truth in Finance & Economics
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Will The Great American Migration From Cities Last?
The manufacturing sector rebounded in September. There are some inklings of inflation even though the Fed sees no chance of higher inflation anytime soon.
Shocking Chart On Low Income Consumers
The consumer is doing a little better as we finish out the month. It still would get a nice boost from a stimulus. Low income people need to get their jobs back or get some more help from the government.
Buy These Stocks If You Think A Vaccine Is Coming
The pandemic is getting worse in Europe which is bad for value stocks. Value stocks and high free cash flow stocks have been underperforming for years.
Consumer Confidence Was Impacted By This Coming Event
Consumer sentiment improved in September. Consumers are looking forward to the election.
Can The Fed Be Any More Dovish?
The Fed was very dovish as expected. It doesn’t see rate hikes for years to come. It mentioned how the economy is improving which is simply a restatement of facts.
The Consumer Might Be Teetering
Redbook same store sales growth is dropping. The unemployment benefits given out are a mixed bag. They certainly won’t boost spending like the stimulus earlier this year combined with the $600 in weekly benefits.
No Rate Hikes Coming Despite Tech Bubble
A few percentage points more fund managers see this as a bull market. They see tech as crowded and expensive. They see the banks as not expensive.
Tech Investors Lever Up
Investors have piled into the triple leveraged Nasdaq 100 and are buying big tech call options which is pushing their stocks up.
Natural Disasters Misdirect Economic Data
Jobless claims are tough to gauge because the data from California doesn’t make sense. There was a national increase due to natural disasters that aren’t related to measuring the recovery.
Temporary To Permanent Job Losses
People are getting more comfortable with going on vacation, but employers aren’t fully on board with bringing workers back to the office.
Why Optimists Are Wary
The reality is many don’t have enough savings because of income constraints, not because of an unwillingness to save. It’s expensive to be poor.
Will This Trend Reverse After 2020?
We are getting more details on how the consumer was impacted by the decline in unemployment benefits via non-traditional data points. Normally, waiting until the retail sales report comes out isn’t an issue, but conditions have changed this year.
48% Of Jobs From Recession Recovered
The August labor report was very strong. It lowered the chance of a stimulus, but it also lowered the need for one. The situation is still very uncertain.
Continued Claims 6 Weeks Away From Financial Crisis Peak
The labor market data looks good. Continued claims have fallen 5 weeks straight, the ISM services employment index spiked, job cut announcements fell in August, and small business hiring plans improved.
How Close Are We To The Worst Of The Financial Crisis?
At the end of 2018, 15% of small caps had no debt. Now it’s in the low single digits. There was a much more drastic decline for small caps than large caps. One of the risks of being a small company is the lack of access to capital.
How Sustainable Are Current Economic Trends?
ACH unemployment recipients had very large yearly growth declines in spending on clothing, home improvement, and general merchandise in the week of August 22nd as compared to August 1st. The growth declines were across the board.
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