The market today finished at all time highs. The jobs reported 200,000+ new jobs with unemployment rate at 3.5%. The economic standard is 5%.
In English: Stable unemployment at 5% means that 95% of the working population is working. When you dip below 5% unemployment we began to think about inflation due to the law of supply and demand. When you have more people demanding products that are in limited supply, you have price increases. That is inflation.
Now we are at 3.5% unemployed, yet the market is going out the roof in value. Inflation and a market correction is going to raise its head. The slowing of the global economy will not help.
I am sticking to my belief that you may want to talk with your financial advisor, broker or your investment professional to see if it is time to take some profits off the table. Remember buy low, sell high.
By the numbers
The DOW finished at 28,015.06, up +337.27 or 1.22%
The S&P finished at 3,145.91 up +28.48 or 0.91%
The NASDAQ finished at 8,656.53 up +85.83 or 1.00%
Russell 2K finished at 1,633.83 up +19.00 or 1.18%
The White House will take credit for theses figures as they should. The jobs and the market are currently in their favor.
Here’s at tip: when the White House says something negative, the market losses value, when they say something positive, the market increases its value. A pattern is emerging and I can bet you a $1.00 the hedge fund managers are making a fortune on this simple fact.
I am wondering, what will 2020 look like? you tell me what you think of all this. Looking forward to your opinions.
Have a great weekend,
Robert L. Woods (a.k.a. R. LaMont W.)