October 10, 2021

As noted in the jobs report issued this week, worker shortages continue to persist.  Worse news is that the unemployment rate fell to below 5%; while that would otherwise be encouraging, the lower new-job count means more folks are LEAVING the workforce (the calculation only considers people seeking employment):

Demand is strong, but supplies of almost all products and services remain too tight, and coupling that with continued enormous deficit spending is bidding prices up; investors know inflation isn’t going away for the foreseeable future, explaining why our long-running bull market is now struggling.

On the plus side, some lower-priced niches within equities markets are starting to emerge – we’ll look to allocate more investment dollars there if the situation persists.