Last week was another lackluster one for the books. The US market actually shuffled along sideways until Thursday when the Institute for Supply Management (ISM) report came out. The ISM was not as bad as I suspected, but it was still not good with a continued increase in inventories. Increasing inventories means slow demand. In addition, the real market mover for the week was the abysmal jobs report released Friday that showed ZERO jobs added for August.
The Other Zero
The other zero very few are talking about is the zero chance that we are not in another recession. Quite frankly, I do not think the economy has ever really “recovered” from the last one. In my mind, a money printing corporate bailout with no job growth and a housing implosion does not make for a recovery. The reality is without the massive government intervention, we would be in a depression versus skimming along on the top of a recession with government life support, which cannot last forever. Did you know that every time GDP has been at or below 2%, the US has been in a recession? Currently, GDP is sitting at 1.5%.
With zero jobs added in August, unemployment still at 9.1%, and all the other headwinds facing the economy, it would not be surprising for the markets to fall further.
Do you have an investment strategy that seeks to protect your portfolio against volatile economic conditions? Call me to schedule a free review of your current investment portfolio – 913.693.7918.
John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit https://www.chladekwealth.com.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of John P. Chladek, MBA, CFP®, President, Chladek Wealth Management, LLC. Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment Advisory services are offered by Chladek Wealth Management, LLC, a registered investment advisory firm in the State of Kansas. The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of Kansas or where otherwise legally permitted.
Market Commentary: Week Ending 9/2/2011
The Other Zero
The other zero very few are talking about is the zero chance that we are not in another recession. Quite frankly, I do not think the economy has ever really “recovered” from the last one. In my mind, a money printing corporate bailout with no job growth and a housing implosion does not make for a recovery. The reality is without the massive government intervention, we would be in a depression versus skimming along on the top of a recession with government life support, which cannot last forever. Did you know that every time GDP has been at or below 2%, the US has been in a recession? Currently, GDP is sitting at 1.5%.
With zero jobs added in August, unemployment still at 9.1%, and all the other headwinds facing the economy, it would not be surprising for the markets to fall further.
Do you have an investment strategy that seeks to protect your portfolio against volatile economic conditions? Call me to schedule a free review of your current investment portfolio – 913.693.7918.
John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit https://www.chladekwealth.com.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of John P. Chladek, MBA, CFP®, President, Chladek Wealth Management, LLC. Material presented is believed to be from reliable sources and we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment Advisory services are offered by Chladek Wealth Management, LLC, a registered investment advisory firm in the State of Kansas. The presence of this web site on the Internet shall in no direct or indirect way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any state other than the State of Kansas or where otherwise legally permitted.
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