Latest / Financial Survival Network / Decoding the Jobs Report: Insights for Investors - David Wright #6081

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Decoding the Jobs Report: Insights for Investors - David Wright #6081 · Financial Survival Network

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  I heard a statistic that if you have an intra market reduction during the year
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  of seven percent or less, you're incumbent is going to later re election even
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  as weak as this incumbent is if there's an intro market entry year reduction of
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  seventeen percent. So if we have a drop of seventeen percent during the year,
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  that would vote better for the trip team. So God only knows what's
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  going to happen, but the Defense certainly probably will try to rescue things at
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  the September or November meeting with a rate although all those percentaduce have lesson with
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  the job or Today you're listening to Carrie Let's his Financial Survival Network where you
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  You need the Financial Survival Network now more than ever. Go to Financial
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  Survival Network dot com and get your free newsletter and gift. Financial Survival Network
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  now more than ever, and welcome you are listening to and watching the Financial
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  Survival Network. I'm your host, Carrie Lutz. Hey, David Bright is
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  with us. We've got a really hot jobs number. You know I reached
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  in the refrigerator David for a bottle of champagne, and I realized I consumed
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  that bottle of champagne for the last jobs number. So now I'm stuck.
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  I need to celebrate, but I've got no beverages to do it with.
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  Well, I think you should just not worry about that, because I think
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  the inflated jobs number is going to be revite down word. Although when you
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  look at you know what jobs are being built. Obviously, what we're seeing
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  here is a number that's been skewed, iire by a lot of jobs that
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  our service oriented and leisure hospitality, even as our fat government gets fatter,
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  all that stuff is contributed to it. Two hundred and seventy two thousand jobs
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  when the element was really an hundred and eighty five thousand. But like you
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  said, it'll be revised downward for sure. But I think that poses some
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  questions for the future of what's going to happen with you know, interest rates
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  and the beads. What are they going to do with that Because at the
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  same time we add all these jobs and then have our revisions downward, the
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  ointment rate rose about to four percent four point one percent, So you've got
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  that, you know, going a little bit higher, So if that's one
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  of lower rates at some point, But some of the beneficials are saying,
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  yeah, well maybe not not so bast because if the markets are levitating on
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  AI stocks, you know, what do we do with that? Do we
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  lower rates? And there will a lot of there's more demand destruction, So
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  lots of questions out there. I think we all kind of have a feeling
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  where things might be heading in the future. Just using the horse US as
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  a point of fact, it's election season, Well doesn't the FED have to
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  cut interest rates to help meat? That's Alan Abelson, late great editor.
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  I think he's I think he passed on from Barons once said the FED is
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  doing what it does best, which is re electing a president. Yeah,
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  Nicole, but true. Huh Yeah, I think so. I think I
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  heard a statistic that if you have an intra market reduction during the year of
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  seven percent or less, you're incumbent is gonna later re election, even as
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  weak as this incumbent is. If there's an intro market entry year reduction the
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  seventeen percent. So if we have a drop of seventeen percent during the year,
• 4:04
  that would vote better for the trop team. So God only knows what's
• 4:10
  going to happen, but the Defense certainly probably will try to rescue things at
• 4:15
  the September November meeting with a rate although all those percentaduce have lesson with the
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  job or today. Hey, remember Will Rogers said, over one hundred years
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  ago, invest in inflation. It's the only thing going up. He was
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  a wise guy, wasn't he. Yeah, on many levels. So how
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  do you invest in inflation since that's the only thing that's going to go up?
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  Here? David, Yeah, good question. Buy all the gold you
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  can and just hang on to it. I guess you know, done in
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  gold? Right, Yeah, there you go. Ammunition gun's got in gold.
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  That's the gone gold. I love it. And you can buy a
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  little bitcoin while you're at it, right, why not? You know,
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  I throw that in. We're good. And I did a couple of versoys
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  on gang Stop perhaps some game stop. Yeah, what's with the meme stops
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  here? David? Like, I thought we outgrew that. I thought so
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  too. But obviously, uh, if you're you're just an ordinary consumer,
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  you can play those games with with stock prices. I thought Joe Kennedy did
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  that during the you know, during the twenties. But I guess we're back
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  to doing that same thing again. And it's kind of crazy what's going on
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  in that world. But there are so many other things to worry about out
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  there other than that. I just it's a pleasant distraction. Yeah, it
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  is. It's kind of funny to see what's going on a little kiddy there,
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  it is. You know. Like, on the one hand, uh,
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  triggering short squeezes I think is a good thing because when you've got those
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  funds naked shorting stocks that are vulnerable to be able to stick it to them,
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  it's not too bad, you know. Yeah, that's right. I
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  totally agree with that abuse of short sellers should be taken to the woodshed and
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  you know, and taught a lesson or two. I mean, if we
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  had an sec and governmental regulatory structure that actually worked for the people, there
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  wouldn't be any game stop situations because you wouldn't be able to doom abusive short
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  selling. And look, I think some short selling is good. Provides liquidity.
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  It also triggers rallies stock market rallies. But in the final analysis,
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  Elon Musk said they started short selling because they had to have the certificates and
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  they knew the certificates would take eleven days to get to them, so as
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  an accommodation to protect the brokers in the in the clients, they provided for
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  short selling to allow the certificate to catch up with the trade. But that's
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  we've gotten wavy, way way way beyond that, haven't we. Yeah,
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  absolutely absolutely know. It's like you had to wait for Wells Fargo to deliver
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  your share statutics before you transfer it. So rather than having to wait two
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  weeks to get the physical certificate, you you could sell the stock and then
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  when you have the certificate, you close out your position and you're you're golden.
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  But so, hey, what are the sectors you should be looking at
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  coming up? Do you think the mining sector precious metals is going to pick
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  up in the next year, Well, I it certainly can't. I mean
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  you have to look at the I think the the mining stocks, the energy
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  stocks. So if it's a Trump presidency, you obviously can look for those
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  sorts of things. Financials of course, uh uh. Back at some deregulation,
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  I think some of those stocks will perform better. Obviously if buying gets
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  in again. You've got to look at the things that are you know,
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  more green in nature. But I definitely think that for most of my clients
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  that are retired, we're sticking with the things that generate dividends and interest and
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  more of the value oriented things that than anything else. All right, so
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  you'll like dividends, right, Yeah, we find that it takes a lot
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  of the staying out. I mean, our dividend oriented things are on pace
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  this year obviously not through appreciation, much appreciation, but just through dividends and
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  interest to you know, have about a six to seven percent income, which
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  for most people, if they've done a good job of accumulating their wealth,
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  that's going to give them plenty of cash flow to live off of from their
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  portfolio if they do want growth place and they can obviously, you know,
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  invest in the and videos of the world, a MB Microsoft, those types
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  of things. But but for just pure dividend place, uh, we use
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  the universe of income strategies, uh, corporate bonds, preferred stocks, those
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  sorts of things, uh, generating a nice return obviously. Uh. You
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  know, the whole concern that I had moving forward is just what's going to
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  happen to our our our economy. Just the vitifurcation of the wealthy and the
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  middle class is concerning to me when you when you look at uh, you
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  know, we've got all these illegals coming over the border which are filling all
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  these service jobs and zinc time, and you've got all these you know,
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  gen zers or millennials that uh got through COVID. It got used to spending
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  more money, having a nicer car. They had all these government subsidies and
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  and you know COVID payments. They're used to using their their government money.
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  And now their credit cards are maxed out, uh in one point one trillion
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  in credit card debt and growing. Uh when does all that end? I've
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  heard of statistic that there's about another three to four trillion dollars available on most
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  Middle America's credit cards. But at what point do the credit card company say,
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  you know what, if you're a little buying on your credit card,
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  pays are well cutting back your credit card credit limits. So when does that
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  bowl issue of credit card debt start to uh, you know, bite the
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  middle American so that you know there be in bankruptcy situations. So and that
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  doesn't even measure the seven hundred billion dollars that's out there and revolving debt,
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  the phantom debt, the buy now and they later types of debt that that
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  are out there that's not even included in that. So feed mole are are
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  had gotten used to this cushy lifestyle, spending money buying their their Amazon toys
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  every day. Uh and uh you know when does that all got to come
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  crashing down around us? Yeah? Well, I'm on the buy now,
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  pay never planol cool. So you think that's a sound strategy and absolutely a
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  solve strategy. You let them, you know what, they'll never buy in
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  Gary, They'll not I'm hoping. I'm hoping if I'm in the age at
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  someplace, what are they going to do? Now? But right, I've
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  never stuck anyone before in my life, and I'm not about to now.
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  But it's damn tempting, isn't it. Yeah, damn damn dumpting. You
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  got that right? Yeah? All right, So look for dividends, look
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  for yield, no bonds. Right, Well, we're buying bond, we're
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  buying bond, but obviously there's not a lot of comfort buying our debt right
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  now. But the people that we have in bonds right now, the durations
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  that we have intermediate durations. Certainly in shorter durations are doing pretty well.
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  But things that that can generate the income that's reliable and predictable, that's kind
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  of my world. That's what we say. Okay, I like it all
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  right, David, appreciate you coming on. It's how thank you, Harry,
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  not what summer is coming? Hey, just tell us again where we
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  find you, how we connect with you on the web, well other you
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  can go to two place, the right financial Group that's right with a W
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  Financialgroup dot com or my book Bonfire of the Sanities b O N F I
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  R E of Thesanities dot dot com. Need a place. We always appreciate
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  your you're boxed and David and your words and the link will be in the
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  show notes for this interview on Financial Survival Network dot com. And while you're
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  there, please sign up for your free newsletter David always a pleasure. Thanks
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  for coming on. Take here, Barry, thanks for listening to Carrie Letz's
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  Financial Survival Network, your solution to today's trying times. For the latest,
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  go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever