Martina’s Corner at Jores Capital podcast, August, 8, 2022

Martina’s Corner at Jores Capital on Monday, August, 8, 2022

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Good morning everybody. This is Martina’s Corner at Jores Capital on Monday August 8, 2022. Welcome to or new program. We will be giving a short summary on market news, politics, economics and other world news and market outlook. We had been looking ourselves for a long time for a summary of 5 minutes max, and we decided to do our own. We will be publishing this podcast Mondays and Thursdays at 4am Eastern time, 10am European Central Time.  So let’s see what moves the markets at the moment.

Labor market added 528 tsd new jobs in July, which is double of what was expected by experts whose expectations were around 250,000 new jobs being created. That leaves employment rate at 3.5% which is the lowest since the 1970ies. The highest number of jobs was created by the leisure and hospitality sector with 96k jobs followed by professional services with 89k new jobs. Yet we have to see that inflation is at historic highs. Fed Chair Jerome Powell made it clear that he would act again but then the next Fed meeting will be in approximately 2 months so a long way to go. A very interesting point worth mentioning is that Powell does not see the US currently in a recession and points out that one reason for not being so is the labor market. He acknowledges that growth is slowing down at the moment but also that a growth rate of 5.5% last year was relatively high, and he sounds positive that inflation can be controlled and not at the cost of paralyzing the economy.

Warren Buffett’s Berkshire Hathaway published results with a plus of 38.8% (which is 9.28 billion) last year but reporting a loss of 53 billion over the last quarter. Buffett emphazises once again on not focusing on fluctuations. He insists on long term investments as it is hard to time the market. That’s also how we see it at Jores Capital. Our approach is long term and highly diversified over different sectors and countries.

As of 3,30am ET/9,30am CET, the European markets opened higher, with the German DAX 1% up and the Spanish IBEX and the UK FTSE each 0,5% up.

 US futures in the premarket (Nasdaq, Dow Jones and SP500) are up half a percent.

We will have to see how higher yields in the bond market will affect the stock market. Yet, I have seen the 10-year government bond at over 10% in the 1980ies and the stock market rocking and rolling. This being said, one always has to see all factors and their interaction. It will keep being an exciting market for a while in our opinion.

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See you again and have a great day!!