Mental Gymnastics.

ANGLES. · Oct 9, 2022 · 6m

Bad news is often good news for investors these days, who have to perform mental gymnastics as the economic picture comes into focus. Traditionally negative indicators of a weaker economy such as rising unemployment or falling consumer spending tend to result in lower inflation, which likely means the Fed can take its foot off the gas with monetary tightening, which should mean less pressure to raise interest rates, which means potentially higher stock valuations.

We saw some of great examples of this last week.

First, the August Job Openings and Labor Turnover Survey (JOLTS) came up…