Political Madness, Fed Talk & Job Report (Report Premium Edition)

Every week, I provide try to keep the Report short with only the essential information you need to make the best choice for your customers and portfolios, but this madness needs to be exposed.

The Biden administration, together with Treasury Secretary Janet Yellen, is boldly trying to deceive the American people about the state of the economy. Which is not only wrong but dangerous.

Please don't take this as a pass on the Republicans because they engage in a similar spin, but this is much more extreme.

Last year, the Biden administration claimed "inflation" was just temporary. However, most people that follow the markets knew it was a lie!

Many of you will remember that we warned readers in June about it and to start moving from bonds and brace for a market drop.

Fast forward several months, everyone is astonished that inflation has reached a 40-year high!

Last week the Biden administration attempted to redefine the term "recession" in a fruitless effort to deceive the public. I don't know if they think we are stupid or desperate to show competence.

All this reminds me of the Great Inflation that happened from 1965–1982. Due to inflation in the middle of the 1960s, the Johnson administration could not reduce expenditure on the Great Society or the Vietnam War. As a result, the Fed was unable to control inflation, and Americans saw a number of inflationary increases that changed America.

Turning to the markets...Last week the financial markets continued to rise due to encouraging speeches and FOMO (Fear of Missing Out).

In terms of corporate results, this was one of the busiest weeks. Earnings exceeded expectations, particularly for the stock market's biggest names, which significantly impact indices. The prognosis is still optimistic despite the pressure on margins, which should continue in the upcoming quarter. (possible crash on Holiday spending reports?)

The second quarter GDP, a Fed rate rise, and the most recent inflation data for the US and the Eurozone were just a few macroeconomic events that took place last week.

If we were to recall just one thing, it would be that investors welcomed the slowdown in the US economy because they regarded it as a justification for the Fed to postpone further interest rate increases.

In other words, the bad news is good news.

Key Market Drivers

Inflation Reduction ActEarningsFed TalkTuesday, August 2 – JOLTs Job Openings (Jun)Friday, August 5 – Unemployment Rate (Jul)

Several US job market figures will be released during the first week of August. The JOLTS Job Openings Survey, Weekly Jobless Claims, and June Employment Data are due on Tuesday (Friday). There will als...

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