I was originally going to do today’s video on something completely different… until I saw the horrific number for nonfarm payrolls in April.
Nonfarm payrolls measure how many workers are in the U.S. — excluding farm workers, some government workers, private households, proprietors and nonprofit employees.
Guys, there was supposed to be a million new jobs created in April in the U.S.
Instead, we got jobless claims this morning that totaled 498,000 and hiring was almost nonexistent in April. The nonfarm payrolls for April ended up being 266,000 and the unemployment rate rose to 6.1% due to there not being enough workers available.
And there’s more bad news: March’s original estimate of 916,000 new jobs had to be revised down to 770,000.
These are professional economists that were expecting jobs numbers to be a million in hopes the U.S. economy was working its way back to life.
How could they be so wrong?
One of two things could have happened… Either the economists don’t understand what they’re looking at, or the economy is overheating from a jobs perspective because people are sitting around at home and getting paid for it.
One thing is for sure, these economists are out of touch with the market, and the economy is driving me nuts.
Then of course, everyone’s knee-jerk reaction to the nonfarm payrolls for April is to believe that everything Federal Reserve Chair Jerome Powell has been saying is correct. They’ll start to believe that the economy isn’t overheating because there aren’t any jobs, and therefore there is no inflation.
It’s actually a terrible sign that the market isn’t showing the amount of inflation that’s currently happening… and investors won’t like how the stock market reacts to this later on in 2021…
Check out my short video below to learn more about nonfarm payrolls for April and what it means for the economy. Be sure to share your thoughts in the comments section below.
And as always, send any trading questions to email@example.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
P.S. What do an 83% stock price dip, dividend cuts and a mountain of debt have in common?
They were all bad news headlines about Apache Corp. in April 2020.
So with those awful headlines, how did ex-hedge fund manager Lance Ippolito know to buy in at that time…
And walk away with a 157% return just over a month later?
He just waited for this.