Twice as Many Bears Than Bulls
The US had 4.8MM jobs come back in June.
Yet the experts who spend all day "studying this kinda stuff" were expecting 2.9MM.
It took only 3 minutes before Steve Leesman on CNBC had this to say, "Joe, here is what I am concerned about...I think the real problem is that we need to know whether this same pace of improvement will be seen in the August reports."
Where’s the love?
And that jobs data arrives following the surprise revision of last month’s report.
Here’s the data:
Better still? The latest FEDEX report knocked the lights out after having invested in a lot of tech to make their business better, more efficient, and more profitable even on lower output for a while as the recovery gets its legs.
Meanwhile this just in from the ISM:
Notice the Theme?
Folks, human beings fret over “the now.”
Markets show us “the next.”
Humans think good or bad.
Markets think better or worse.
The Sad News?
A vast amount of the data we’re seeing tells us the virus was a gut punch.
It was a left field event that created a 33-day bear market.
This is now a new bull market and a new recovery in a new decade.
And that also means a new baton handoff from one generational cohort to the next.
This is The Barbell Economy©.
The Crowd Perception
The market sentiment of the investor audience continues to deteriorate, which is wonderful news for long-term investors.
The masses misunderstand what bad news is and what it means, because the bad news is almost always "good” for the future.
Remember about a month ago when we were watching millions lose their jobs because of a forced shutdown.
We said, "the good news friends is that there will soon be a report where millions of jobs come back..."
And about that crowd sentiment:
Twice as many bears than bulls.
Expect July to be choppy like it always is.
The same goes for August on both counts.