Well the May jobs certainly proved to be awesome - an awesome disaster that is!
At 38,000 jobs vs an consensus of 160,000 jobs, it was the worst jobs report since 2010, just as the US was emerging out of the Global financial Crisis. In a addition to that, the April jobs report was revised lower at 123,000 jobs vs the prior report of 158,000.
On top of that, the US has lost 315,000 full time jobs in the last two months vs a gain of 118,000 part time jobs.
Now what happened to the Fed's narrative that the economy will stay "strong"? The US has been missing jobs growth expectations for two consecutive months! Isn't that a sign of a weakening economy?
In fact in the last PMI flash readings, indicators are already there that the jobs growth in the month of May will be below expectations, but the Fed believed otherwise and continued to ramp up the US$ through a series of hawkish tone to warn of interest rates hike.
After the initial sharp fall, the Plunge Protection Team (PPT) came in and decided to push the indices higher in an attempt to maintain their recent highs. And this is not the first time the PPT has come in to rescue the market. What happens to the free market system?
One thing is certain. Central banks across the globe are pushing up the market to hide the failure of their policies.
Meanwhile to continue to support the markets in their highs, you can rest assured that they will also continue to rack up huge balance sheets and debts.
Recently I have added my position in Bitcoin, due in part of the worsening global economic indicators, the bank bail-ins, the restriction on cash and withdrawal, the prospects of more currency printing, unsustainable government debts, and more importantly, Bitcoin is finite and come July the mining will be halved.
I continue to be bullish on gold and physical, the miners and related ETFs.
Remember to do your own research as our risk appetite differs.
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