Back on November 18 the Washington Post featured a piece by Jim Tankersley that headlined:
7) Miscellaneous Health Practitioner Offices – Did somebody say health care again?
Let’s see how these two employment employment growth lines do when the medical insurance industry collapses. It’s coming. Nobody can afford to pay the executive skim any more. You’ve heard of the fast growing “gig economy.” That’s where workers work “gigs,” short term jobs as independent contractors. Employers love gig workers because they can rid themselves of the requirement to pay for health insurance. And most gig workers can’t afford it.
8) Breweries, Wineries, and Distilleries – Need a job? Get thee to a winery! Yet, again real wages are in a downtrend. Too many applicants tend to do that. With only 140,000 jobs in these industries and plenty of people wanting to do this work, I’d expect the downward pressure on wages to be a trend.
9) Automobiles and Light Trucks – Most of this is in the Utility Vehicle and Light Truck subsector. Thanks to the cheap energy prices since 2014, demand for these vehicles have soared. So has demand for workers. Their pay is good. But there are only 180,000 jobs for building SUVs and pickups. There are 5 million unemployed factory workers.
10) Miscellaneous Professional and Technical services- Here’s another growing field that has seen some recent wage growth, but only back to 2014 levels. There’s some potential to employ factory workers, but not enough jobs to make a difference.
Ultimately, a bull market in stocks that is based on money printing and rank speculation isn’t going to provide jobs, or health care, or enough income to feed the masses. There’s no trickle down, just more and more people working performing low paid services for the plutocrats and their cronies.
You can hang on for the ride, but at the same time, you must be ever vigilant for signs that the end is near. We see a few hints in this data. But fueled by cash and animal spirits, the upward march goes on, even as an ever growing portion of the population can no longer afford the products or services that public companies provide.
This reminds me of the last days of the tech bubble in 1999-2000. Many of us recognized then that the game was over. But it continued well into 2000 before the tide turned. Egged on by the mainstream media, investors lost their minds in the final stages of that bubble, just as homebuyers did in 2005 and 2006. It took until 2007 for housing prices to collapse.
These mainstream pundits today say that we are in this big jobs recovery where forgotten blue collar workers will magically get jobs and make more money. This is crazy stuff. When you dive into the data, you see that it’s absolutely unsupported. So I believe that we are almost certainly in the last stages of this bubble. The rosy scenario driving stocks to new highs is driven by a false narrative. The next few months look like a good time to be steadily be taking your chips off the table and going home.
Meanwhile, I’ll continue to track the progress toward the endgame of this madness right here, and at the Wall Street Examiner for more technically minded traders and investors.
Lee Adler first reported in 2002 that Fed actions were driving US stock prices. He has tracked and reported on that relationship for his subscribers ever since. Try Lee’s groundbreaking reports on the Fed and the Monetary forces that drive market trends for 3 months risk free, with a full money back guarantee. Be in the know. Subscribe now, risk free!