We, at Evolution always say that if you can connect the dots, the big picture is revealed. One helping aspect in the puzzle is how tidbits relate. We have a few for your consideration.
Job Numbers
Ever wonder when job numbers are released, whether it helps or hurts the unemployment percentages? Last week the BLS stated that 428,000 jobs were filled, but the unemployment percentage remained the same at 3.6%. Dear Reader, you know how position on this matter. The real reason why our economy has not been strong for years is found in one aspect - labor participation rate. It is still low. It almost touched 60% in 2020 due to COVID. To give you perspective, the labor rate in 2000 was almost 68%. At present, the labor rate is 1.2% lower than 2020. What does that percentage mean? It means that 896,000 less workers were employed. Both President Trump and Biden BS when it comes to the truth about our economy. You cannot trust Republicans or Democrats. It is why we are for forming a new third political party, the Liberty Party. Continuing...
The other most important stat is the import/export ratio. In 2021, our deficits expanded an astonishing 27% higher than 2020. Consider this, if you have the time? In 2020, the labor participation level was almost 60% and in 2000, it was almost 68%. How many millions of jobs have we lost? You can see the effects sleeping on streets every day.
Layoffs
The news is full of reports on jobs that are left unfulfilled, but there is a real reason why the unemployment rate goes unchanged even in the face of a strong job report. It is layoffs and cost cutting by firms. This gets very little print or coverage. This is a list that we gathered.
1) Better: they layed off 4,000 and the company losr $100 million. 2) Noon: they have 495 less workersin this weight loss firm. 3) Peloton: 2,800 were given the pink slip on company outlook and losses. 4) Thrasio: they cut 20% of staff as this partner of Amazon said that they expanded too fast. 5) Robinhood: Also claim that they expanded too fast with workers suffering under cost-cutting. 6) Wells Fargo: Mortgage apps have dropped. Company employs cost-cutting in housing devision. 7) Canopy Growth: they have 250 less to grow some buds in this cost-cutting measure. 8) Food 52: 10% of company layed off as they decided to take a new direction. Does not sound good. 9) Cameo 87: Another firm that uses the cliche that they exoanded too fast.
In a related aspect, some big tech firms like Facebook have instituted a job freeze. Of cource, one reason for Facebook is that they face a lawsuit?
Market
Everyone who has purchased shares on NASDAQ from the November lows of 2020 is in a losing position. Margin calls will be going out soon to which will push the market lower. We maintain our previous outlook under charting for lows in the Dow, Transports and NASDAQ. Protect yourself with stops. Peace.
