October jobs report came in hot: unemployment dropped to 4.1% (vs 4.2% expected), 165k jobs added (vs 60k expected), and prior months revised up by 84k. Wages up 3.1% year-over-year.
This kills the soft landing narrative some were clinging to. Labor market isn't cracking — it's holding firm. Fed's got no reason to pause now. December hike is back on the table.
Markets hate this because it means higher rates for longer. But here's the thing: a strong labor market is actually good news. People have jobs. Wages are growing. The economy isn't rolling over.
The problem is we got used to free money and now we're mad that normal interest rates exist. Fed's job isn't to make your portfolio go up — it's to keep inflation in check without wrecking the economy. So far, they're threading that needle.
Don't fight the Fed. Don't fight the data. Adjust your expectations and position accordingly.
This kills the soft landing narrative some were clinging to. Labor market isn't cracking — it's holding firm. Fed's got no reason to pause now. December hike is back on the table.
Markets hate this because it means higher rates for longer. But here's the thing: a strong labor market is actually good news. People have jobs. Wages are growing. The economy isn't rolling over.
The problem is we got used to free money and now we're mad that normal interest rates exist. Fed's job isn't to make your portfolio go up — it's to keep inflation in check without wrecking the economy. So far, they're threading that needle.
Don't fight the Fed. Don't fight the data. Adjust your expectations and position accordingly.
