• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Contact Us Today!
800.317.9119

Investor Resources Inc.

Portfolio Management, Wealth Management, Investment Analysis

Client Portal Login
  • Home
  • Welcome to IRI
  • Investment Process
  • Research & Strategies
    • About the RPM System
    • 401K Defense
    • Theory or Reality
    • Fiduciary
    • Concentration
    • Managing the Unexpected
    • Disciplined Flexibility
    • Modern or Aged?
    • Change or Hope?
    • Not Modern? Then What?
    • Math – Not Magic!
  • Radio Shows
  • Video
  • Investor Blog
  • Contact Us
Week In Review – October 10 2022

Week In Review – October 10 2022

October 10, 2022 by Perry Sikes

The U.S. Created 263,000 Jobs in September… The unemployment rate fell slightly, to 3.5%.

What it means— That’s not what investors wanted. A weak jobs report would have supported the notion of a Fed pivot and given investors a reason to push stocks higher. While the 263,000 jobs created isn’t a blockbuster number, the falling unemployment rate gives the central bankers cover to raise rates aggressively the first week of November if everything remains the same. The report also showed that average hourly earnings were up 5% over the last 12 months, so workers are still losing purchasing power.

OPEC+ Cuts Output by 2 Million Barrels Per Day… Citing a global economic slowdown and easing oil demand, the oil producing cartel voted to reduce the overall oil production quota for the group by two million barrels per day.

What it means—There’s both less and more to the decision than meets the eye. Several members produce less than their quota already. Since the announced cut is from the group’s baseline, the actual cut will be about 500,000 barrels per day, and that’s in a global market of around 100 million barrels per day. The change won’t make a physical difference in the amount of oil available, but it does send a strong message about the price. The OPEC+ members used the meeting and production cuts to signal that they see $100 per barrel as a level of support and aren’t concerned about Western nations having to dig deep to pay for it. If the U.S. and Western European countries stick to their Russian energy sanctions in 2023 and beyond, we might see the price of oil melt up instead of easing below $75 per barrel.

Job Openings Fall 1.01 Million, Still at 10.1 Million… If you don’t include the pandemic, the number of job openings in the U.S. have fallen the most in history. Even so, we still have more than 10 million openings, or almost two openings for every unemployed person.

What it means— By itself, the drop in job openings from a near-record high to a still really high number isn’t that interesting, but in the context of a weaking economy that might give the Fed a reason to pivot, the drop in openings was huge. Investors took the data point as a strong signal that the Fed might not raise rates at the pace it suggested at the September meeting, which would mean that a reversal to easier monetary policy is just that much closer. That seems like a lot to read into one number.

Atlanta Federal Reserve GDPNow Model Estimates Third-Quarter GDP Growth at 2.7%… The estimate was 0.3% on September 27 but has been pushed higher by revisions to the National Income and Product Accounts (NIPA) at the Bureau of Economic Analysis.

What it means— The GDPNow model has been the best GDP forecasting tool for years. It was eye-catching to see it jump from 0.3% to almost 3% in a matter of days at the end of the quarter. If the estimate is close to correct, then the Fed will be comfortable raising rates, secure in the knowledge that it hasn’t brought on a recession.

Researcher Develops Laser That Can Kill Bugs From Five Feet Away… We’ve all been there. We see a cockroach or some other gross bug and want to kill it, but not be that close to it. Now Ildar Rakhmatulin, a research associate at Heriot-Watt University in Edinburgh, Scotland, has solved the problem. Using cheap, off-the-shelf technology, Rakhmatulin used his interest in machine learning and engineering to make this dream a reality.

His invention uses a small computer to process digital signals from two cameras to lock in on the bug’s position before directing a galvanometer to zap it with the laser. Even though Rakhmatulin open-sourced everything so that others can build their own bug lasers, he still warns people to take precautions. The device might kill bugs, but the laser still can take your eye out.

 

Data supplied by HS Dent Research

“When the facts change, I change my mind.

What do you do?” ~ John Maynard Keynes

Our plan is “the plan will change.”

What is your plan?

 

Relative strength measures the price performance of a stock against a market average, a selected universe of stocks or a single alternative holding. Relative strength improves if it rises faster in an uptrend, or falls less in a downtrend. It is easily applied to individual positions in your portfolio and to sectors and asset classes.

 

A copy of our form ADV Part 2 is available online.

 

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Investor Resources, Inc. (“Investor Resources”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Investor Resources.  Please remember to contact Investor Resources, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Investor Resources shall continue to rely on the accuracy of information that you have provided.   Investor Resources is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of Investor Resources’ current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at https://www.investorresourcesinc.com/.  Clients Please Note: Advise us if you have not been receiving account statements (at least quarterly) from Charles Schwab & Co.™

 

Filed Under: Energy, Unemployment Tagged With: job openings, jobs, opec

Investor Resources Radio

The Investor Resources Radio Show airs on KTTH AM 770 every Saturday at 10:00 AM. Listen to Don ...

Read More

Seminars

Tired of being told that a diversified portfolio will keep your investments safe, then watching them lose ...

Read More

Webinar Registration

April Market Update Saturday, April 1st at 8:30am. Click here to register now. Change is the ...

Read More

Meet The IRI Team

We have assembled a skilled and experienced team of experts that will help you navigate any financial situation. ...

Read More

Copyright © Investor Resources Inc. All rights reserved. Investor Resources, Inc. is a registered investment adviser in the States of Washington, Arizona and Texas. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.

Compliance  |  Important Customer Disclosure  |  ADV Part 1 and 2

Terms of Service  |  Sitemap

Bellevue Office: 601 - 108th Ave. NE, Suite 1900, Bellevue, WA 98004  Phone: 425.673.5000

Port Orchard Office: 1922 Pottery Ave., Suite 110·Port Orchard, WA 98366  Phone: 360.895.9119

Login

Lost your password?

Reset Password

Log in