“Curiosity is, in great and generous minds, the first passion and the last.”
“Curiosity is, in great and generous minds, the first passion and the last.” Read More »
Employment
“Neither a state nor a bank ever [has] had the unrestricted power of issuing paper money without abusing that power.”
Stocks rallied smartly last week. The Dow was up 2.6%, The S&P 500 rallied 4.0%, and the Nasdaq jumped 6.0%.
Growth stocks outpaced value shares by a wide margin. The big-cap mega-scalers led the rally, and the poster child for the AI revolution was the clear winner as
Don’t get too excited, though; the broad market (S&P 500) remains within its range since April. The S&P 500 is marginally
(-0.50%) below, the Nasdaq is -5% below, and the Dow is -17.56% below all-time highs. Markets are skittish and fearful of change.
“He who awaits much can expect little.”
The Big Story of the Week was Powell’s speech in Jackson Hole. The Chairman’s message was clear: The Fed’s focus has shifted exclusively in the direction of U.S. Employment. Inflation will be allowed to run hot–especially in services and shelter.
There was little doubt that more stimulus was coming. Powell has signaled for months that he wants to stimulate—all he needed was supporting evidence. He got it. The BLS revised its new job calculations (Reducing the new jobs created in the year by over 800,000), which now indicate that employment growth was 30% lower than previously advertised.
“He who awaits much can expect little.” Read More »
“People are listening to narrative and not paying attention to data.”
The Perry Capital Portfolio is conservative. It always has been and certainly is now. Perhaps too much so. It
holds 62.5% in the Money Market, earning a risk-free 5.18%, with an additional 15% in T-Bills which have an average guaranteed return of 5.25%.
“People are listening to narrative and not paying attention to data.” Read More »