Profile image
By Greater Fool (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Diddled

% of readers think this story is Fact. Add your two cents.


Did the feds lie to us prior to the election?

Hmm. Conspiracy stuff. Conservative click bait. But it’s an interesting question. The job numbers for September were terrific. Ottawa announced the creation of 135,000 new positions in the two months leading up to the October vote.

Then, pffft.

Last month the country actually shed jobs (when economists expected 15,000 more). But that’s just the half of it. Over 40,000 people lost their jobs in manufacturing and construction. More than 16,000 full-time employees with benefits were replaced by 14,000 part-timers. The biggest areas of job gains – government (20,000) and the real estate/finance biz (18,000).  Great. More civil servants and realtors.

Now, in fairness, the monthly jobs stats are as predictable as this blog. And wage gains were pretty good at more than 4%. But it sure makes an old dog suspicious.

By the way, 66% of people voted on October 21st. Of those 33% (5.9 million) picked the Libs and 34.3% went for the Cons (6.1 million). So the T2 gang formed government with the support of 22% of the citizens and won 36 more seats. Can you see why Mr. Trudeau dropped his promise for electoral reform? And why Alberta’s pissed?

Okay, on to something happier: Mr. Bond Market.

In case your spouse asked you during an intimate moment this morning, “Yes, but how big is the bond market, lover” here’s the answer. In the US it’s $10 trillion bigger than stocks. Trading is huge – $700 billion or more a day. And debt just keeps growing, as you know, with governments constantly issuing new bonds. So small changes can have big implications everywhere.

Earlier this week we told you the recession had been called off. Yay. Better-than-expected corporate profits. Good US jobs numbers (unlike ours). A steady-eddy Fed report. Easing of US-China trade tensions. The potential of tariffs being rolled back. A second term for pro-business Trump.

All of that has propelled stocks to new heights. The highs are higher. The lows are higher. Money is flowing from the margins to the centre. Bond prices have tanked as yields surge. Preferreds up. Gold plopped. No need for ‘safe haven’ stuff when the party’s all equities. And while the quixotic president could take the punchbowl away with a single Tweet, the odds are he won’t. Or if he does, he’ll pivot back. The man is obsessed now with 2020.

Remember the inverted yield curve? How could you forget? That’s when the amount of interest paid by short-term debt (of a few months, for example) is higher than the yield on long stuff (a decade or more). It shows Mr. B. Market is expecting future growth to dissipate, inflation to crash and the economy contract. Last summer it was all the talk as the amount of interest paid by 10-year US Treasuries plunged to 1.4%, sending bond prices surging. Money coursed from stocks to bonds. The doomers flooded into the comments section. Guts everywhere.

Now it’s all changed. On Thursday the biggest jump in yields of the Trump presidency took place, and that 10-year note is again near the 2% level. In the bond world, that’s big. The signal now is not for recession, but growth.

The thinking is that the Fed, in raising rates nine times, might have been a little too frisky in its monetary policy. So when the US economy staggered a bit (and as Trump sharpened the trade war) the central bankers backed off. Three rate cuts have ensued, and the expectation is America may be achieving that mythical ‘soft landing.’ That’s when an economy cools and stabilizes after a period of growth, but avoids crashing into a job-killing crater. No smoky hole in the ground. Instead, a safe descent.

So, new records this week. Thus far in 2019 the Dow is ahead 18%. The S&P 500 is up 23%. Bay Street has added 17%. A balanced and diversified portfolio has plumped 10%, and with far less volatility.

Anything could happen to throw the numbers off. But for investors this has been a helluva year. Now that the bottom has been made for interest rates there’s more certainty about what lies ahead. At least in the States.

Four years from now there will still be a President Trump. But a Prime Minister Trudeau?



Source: https://www.greaterfool.ca/2019/11/08/diddled-2/

Support BeforeitsNews by trying our natural health products! Join our affiliate program
Order by Phone at 888-809-8385 or online at
www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver! Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!

Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!

Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!  Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!  APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  


APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.


Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Loading...
MOST RECENT
Loading...
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.