💃🏽Two weeks back, the financial world was looking like a typical high school dance with two sides staying far apart from each other. The 10- year Treasury Note yield rose to 5% and the S&P 500 slid into a correction. But hold onto your pom poms because last week the 10-year yield decided to take a break back toward 4.6%. And the S&P 500 made a comeback as Fed cheerleaders changed their chants from "we hope the Fed's got this" to "the Fed's really
😎The Fed jocks decided to play it cool and keep rates as they are, but they're as indecisive as most teenagers. Their statement was basically some minor word swaps like calling the economy "strong" instead of "solid" and saying employment gains have "moderated" instead of "slowed." Someone must have been brushing up on the thesaurus during English class.
📉And then, the crowd went wild as nonfarm payrolls increased by just 150,000 in October, which is what the Fed and investors have been screaming for. Slower growth, less wage inflation, and a slightly higher unemployment rate. But hold on, folks, because this could also mean we're tiptoeing toward a recession next year.
And lo and behold, the ISM Non- Manufacturing Index dipped to 51.8 in October. The service sector is still performing, but it's running out of gas. Most major industries reported growth, but it's like expecting a party and getting a meeting of the math club. 🤓
Patrick Huey is a small business owner and the author of two books on history and finance as well as the highly-rated recently-released fictional work Hell: A Novel. As owner of Victory Independent Planning, LLC, Patrick works with families and non-profit organizations. He is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Advisor in Philanthropy® and an Accredited Tax Preparer. He earned a Bachelor’s degree in History from the University of Pittsburgh, and a Master of Business Administration from Arizona State University.