The great debate seems to be whether we are headed in for a recession or an expansion. The latest jobs report shows more jobs added than expected at 467,000 and the JOLTS report still shows 10+ million jobs open but the stock market has been volatile in anticipation of something negative so what will it be?
Non-farm payrolls: +467,000 + 125,000 expected and a revised +510,000 in December
Finance Yahoo
The news seems very positive and if the Fed does indeed follow through and raise rates in March then we will likely see a market correction however this will likely be good over the long term as it instills more confidence in the business landscape and allows business owners to plan for an expansion instead of a contraction.
Of course there are also many risks including war in Ukraine that can engulf Europe or the world, a resurgence of covid or deadly mutations and other unknown scenarios but our strategy remains the same. We expect high inflation over the next few years to decade and as such will position our portfolio for value dividend and income generating investments.
Stay tuned and stay solvent…