Bizarro World Continues

Last week, our commander in chief commemorated the 75th anniversary of D-Day by giving a relatively good speech.  While still in Normandy, he got in a twitter war with Bette Midler.  He also took time to criticize the special counsel and the Speaker of the House.  Every time he has a moment to act presidential, he decides to revert back to reality TV star.

Numerous investigations into big technology companies were announced.  Apple, Facebook, and Google all face government inquiries regarding their business practices.  There is a growing movement to break up large tech companies. 

On Friday, the Labor Department released the May jobs’ report and indicated job creation has slowed.  Pundits immediately started talking about the Federal Reserve cutting interest rates sooner rather than later.  Not only did May’s job creation miss the estimate, March and April numbers were revised downward.  The economy has clearly slowed.  Remember, all of these figures were tabulated before President Twitter threatened tariffs on Mexico.  As I’ve written in the past, uncertainty does not help economic growth.  https://www.cnbc.com/2019/06/07/nonfarm-payrolls-unemployment-rate-may-2019.html

Despite all this noise, the stock market had its best week of the year, albeit after several weeks of declines.  All other things equal, the stock market goes up when interest rates go down.  Right now, the stock market is pricing in an interest rate cut.    

Focus on the important news: the economy has slowed.  I have no idea if this data is a precursor to a recession or just a short term blip.  Now is the time to evaluate what you are doing and figure out how to prosper in a slow or negative growth environment.       

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