The Fed did not pivot. Despite Wall Street's blowoff rally in face of a fantom Fed "Pivot" inferred from slightly lower CPI readings, every Fed head has come out to say they are still committeed to raising rates to fight inflation.
And in spite of a strange employment report in July, the announced corporate layoffs are accelerating, household debt is soaring, and corporate profits were NEGATIVE for the quarter when you strip out oil company profits. And the yeild curve is inverted to an historically severe degree.
All of which paints a picture of a misguided Fed raising rates into a rapidly slowing economy.
What this means is that at some point soon every asset (except the US dollar and long US bonds) will fall. That includes gold, I'm afraid.
I don't know when. Neither does anyone else.
But the storm is coming.
And when it hits the Fed will finally pivot. But then it will be late. And they'll go back into Bailout QE forever mode. And that's when only Gold and hard assets will protect you
Amazon Cut Its Staff by Almost 100,000
in the June Quarter.
Job Cuts Surge in June 2022, Up 57% From May,
59% From June 2021;
Highest Quarterly Total Since Q1 2021 WORK
Mass layoffs and hiring freezes:
Tech workers report huge drops in confidence
in job security
A wave of layoffs is sweeping the US.
Here are firms that have announced cuts so far,
from Shopify to Peloton.
Peloton: Over 4,150 people
Shopify: About 1,000 workers
7-Eleven: 880 jobs
Vimeo: 6% of its workforce
Tesla lays off about 200 Autopilot workers and closes a California office as Musk staff cuts spread
- The cuts stem from slower business growth, paired with rising labor costs.
- The layoffs span across industries, from mortgage lending to digital-payment processing.
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