f7ben Posted June 7, 2019 Share Posted June 7, 2019 (edited) So today's jobs report is being watched intently. If the jobs report is better than expected the market will tank fearing that the fed may back off the rate cut talk. If it's a bad number indicating the economy really slowing the market will rise because it will be viewed as a guarantee for fed stimulus When the market pricing is predicated on the hope for fed stimulus and not valuation there is a real problem. Edited June 7, 2019 by f7ben Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted June 7, 2019 Share Posted June 7, 2019 36 minutes ago, f7ben said: So today's jobs report is being watched intently. If the jobs report is better than expected the market will tank fearing that the fed may back off the rate cut talk. If it's a bad number indicating the economy really slowing the market will rise because it will be viewed as a guarantee for fed stimulus When the market pricing is predicated on the hope for fed stimulus and not valuation there is a real problem. Corporate welfare at work. Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 7, 2019 Author Share Posted June 7, 2019 This is good news.....right woolie? Quote Link to comment Share on other sites More sharing options...
F3600 Posted June 7, 2019 Share Posted June 7, 2019 I don't know if valuation is that far off though. Looking at P/E we are actually at lower P/E than we were 1 year ago not only for the Dow but for the broader markets. Dividend Yield is also up over a year ago. That tells me was are actually more valuation minded right now. I do think a rate cut is foolish though, even if the jobs numbers are even mediocre. http://www.wsj.com/mdc/public/page/2_3021-peyield.html Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 7, 2019 Author Share Posted June 7, 2019 2 minutes ago, F3600 said: I don't know if valuation is that far off though. Looking at P/E we are actually at lower P/E than we were 1 year ago not only for the Dow but for the broader markets. Dividend Yield is also up over a year ago. That tells me was are actually more valuation minded right now. I do think a rate cut is foolish though, even if the jobs numbers are even mediocre. http://www.wsj.com/mdc/public/page/2_3021-peyield.html A year ago the economy was expanding at a great pace. Now that pace has screeched to a halt and forward looking valuation has changed very little. We are just a few points off all time highs with a recession starting us directly in the face. The fed will start firing bullets at the giant elephant in the room and all it will do if blow the bubble up a little bigger Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 7, 2019 Author Share Posted June 7, 2019 They raised rates too quickly and now the cuts will do little to stave off the slowdown. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.