Another week and another 900,000 Americans filed an initial jobless claim for the week ending 16 January. This puts that prior two initial claims reports at 900k and above. For context, during the depths of the GFC, claims peaked around 660k. We have not seen a number in the 600k range, since last year when the pandemic led restrictions were put into place. This is a major structural problem with respect to the jobs markets and will take years to work itself out. There will be behavioral and spending changes once the economy is “re-opened.” In turn, this will affect the economy and old correlations may break down and new correlations and patterns established.
It is difficult to believe that with so much uncertainty that remains, that the markets are accurately capturing all of this as reflected in current prices. With respect to US equity markets, we are witnessing one valuation method after the next that is in the 95th to 99th percentile. These are ranges not scene since 1929 and the “Roaring 20’s,” the dot-com era, and in the lead up to the GFC. Some metrics are even at all-time highs. And another tidbit of information that came across the wires today is that insiders, such as CEOs, are selling their company shares at an all-time high rate, meanwhile, retail investors have never been so bullish. Something tells us that this is not going to end well. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Liberty #Revolution #Inflation #Gold #Silver #Recession #Depression #EndTheFed #bananarepublic #USA