WTF is Wrong With You Business Peeps?
- Thread starter MyTeamIsOnTheFloor
- Start date
Investors want margins. More workers mean more people get paid.
If Apple cut 400 jobs, their stock prices would go up, and I would be more valuable. I'd prefer the people have good jobs.
You need to watch Trading Places again.
Looking good, Billy Ray! Feeling good, Louis!
Not necessarily.
If a department grossly missed their mark, I could some heads rolling, but general job cuts across the board typically raise stock value.
The stock market isn't the only source of prosperity.
As to the stock market, if you are dollar cost averaging the price drops offer an opportunity to accumulate more shares.
GNP up in large part because federal spending as a % of GNP is still very high compared to pre-covid, and because consumer debt is spiking.......Not a solid foundation for the future.
Short answer, inflation. Good news on growth and employment means higher rates for longer, which the market doesn’t like.
Well, federal government spending accounts for about 24% of the GDP with local and state spending adding another 17% for a total of 41%.
Both are connected. Higher GDP with higher unemployment means continued consumer spending which leads to inflation not dropping as quickly as hoped and will lead to rates remaining higher for longer or the Fed actually raising rates.
I'm not sure banks are giddy about high interest rates. It typically kills margins, stops borrowing and in turn hurts profits. The Fed is expected to hold fast on the current rates or even bump one more time in the next 16 months, or so I've heard. Banks are in a money grab situation in order to lead more without borrowing funds from the government, problem is the government is offering high interest rate bonds that look more attractive than bank sold products. Big banks thrive (big government=big banks) while mid to community banks tend to feel the brunt. Seems like the more we put in the hands of the government the worse it gets for working class America.
I think in both cases the numbers are interpreted as supporting another Federal Reserve rate hike or delay in lowering interest rates. At the same time the 10 year bond and other key rates went up. Higher rates: lower stocks.
Next step—say it with me, everyone. It starts with a “b” and rhymes with “tenderloin.”
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