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I can't read the article, so this is one of those shoot from the hip comments. With that health warning out of the way, I am surprised that a strong jobs repor

I can't read the article, so this is one of those shoot from the hip comments. With that health warning out of the way, I am surprised that a strong jobs report would sink stocks, unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have downward pressure on their salaries? Strong jobs should provide confidence. Maybe just maybe we aren't going to have a big recession any second.

lapcat 4y ago
> unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have downward pressure on their salaries? This is the point. The Fed has been very explicit lately that they've raised interest rates in order to depress wages. They said the quiet part out loud.
- whitemary 4y ago
  The extent of denial about this is terrifying. I mean, the Fed literally gave that exact reason for the first rate increase. They could not have been anymore explicit.
SaintGhurka 4y ago
> unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market I'm pretty sure it's the former. Higher rates wallop stocks in multiple ways. They slow the economy in general, they directly raise the cost of borrowing for debt-addicted corporations, and they create an attractive alternative for investors. If you had a lot of money in 2020, you could buy 10-year treasuries yielding less than a percent, or you could take your chances in the stock market that was down 25% off it's highs. Today, it's completely flipped. You can make 3.5% in the bond market with no risk, or you can roll the dice on a stock market that's up pretty substantially.

lapcat 4y ago

> unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market because there were lots of tech workers recently laid off and would therefore have downward pressure on their salaries? This is the point. The Fed has been very explicit lately that they've raised interest rates in order to depress wages. They said the quiet part out loud.

whitemary 4y ago
The extent of denial about this is terrifying. I mean, the Fed literally gave that exact reason for the first rate increase. They could not have been anymore explicit.

SaintGhurka 4y ago

> unless those stocks expected to be able to get some benefit from a weak jobs report like slowing the increase in interest rates, or a cheaper labor market I'm pretty sure it's the former. Higher rates wallop stocks in multiple ways. They slow the economy in general, they directly raise the cost of borrowing for debt-addicted corporations, and they create an attractive alternative for investors. If you had a lot of money in 2020, you could buy 10-year treasuries yielding less than a percent, or you could take your chances in the stock market that was down 25% off it's highs. Today, it's completely flipped. You can make 3.5% in the bond market with no risk, or you can roll the dice on a stock market that's up pretty substantially.