SANTA FE, N.M., August 5, 2016 — Stocks and market averages are partying hearty Friday morning, celebrating the “massive” job creation numbers just posted for July. Employment was allegedly up 255,000, a number that would indeed seem relatively impressive, save for the pathetic job numbers posted for April, May and June, which tended to take the bloom off the rose.
BTW, the real unemployment figure (U-6) remains stubbornly stuck at 10 percent give or take, as opposed to the fake unemployment figure (U-3), which somehow remained flat after that big job jump, standing pat at a fake 4.9 percent. If you don’t believe us, ask your unemployed or underemployed neighbors.
In other news, the Hillarycrats continue to push the Wrath of Khan, having gored Donald Trump by trotting this pro-Clinton, pro-Sharia Law provocateur around the MSM networks, all of which are eager to smear the opposition at any turn.
Latest episode: It was revealed that Khizr Khan has been an in-the-bag Clinton supporter and funder for years as well as working for a law firm that promotes pay-to-play Muslim immigration to the U.S. earlier this week, the firm’s website was magically deleted–in its entirety–overnight.
What’s the relationship between these two interesting happenings?
Simple. Manipulation of the news by a compliant media whose primary mission statement for 2016 reads:
Promote the brilliant success of the Obama administration’s economic miracle to sell a dumbed-down electorate on voting for four more years ot it.
Hype up the Clinton Machine’s 2016 edition of Cindy Sheehan (Khizr Khan) to provoke Trump, smear and slander Trump on national TV, and then distort his reaction to the provocation–with the goal of getting the Hillary Clinton email scandal off the front pages and headline cable TV news.
The message: Let’s celebrate the brilliance of Obamanomics by electing a stable, loyal, reliable professional (Hillary) as our next president over a clueless, racist, mean-spirited clown (Trump).
You do have to hand it to the Clinton camp as well as to America’s first true Marxist party. With the media in their collective pockets, they’ve been incredibly successful in transforming economic and political fiction into perceived truth. But it’s who they are and what they do.
Most astonishingly of all, all this destructive, left-leaning nonsense has the full support of the wealthiest Americans and the biggest American corporations, all of whom would be obliterated in any Cuba- or Venezuela-style socialist revolution.
Those mega-wealthy individuals and corporations want total control of America’s wealth and America’s hapless peasantry, a class that continues to grow by the hour as real jobs are being destroyed by the boatload.
If the media told the truth about those fabulous 255,000 July jobs, we’d soon learn that, as has long been the case, most of these jobs are in the minimum wage category. The “high-paying” jobs have been exported offshore for years. Americans lose opportunities while the wealthy get wealthier, roaming the world for slave labor.
The Maven is hoping voters will have begun to pick up on this inconvenient truth before heading to the polls in November. The media, on the other hand, is doing their best to suppress voter turnout by littering the airwaves, 24/7, with fiction and lies. None of this is good either for markets or for this country’s increasingly dismal future.
We continue to adjust our portfolios accordingly. Any trading environment based on falsehoods is a treacherous one and we remain highly cautious going into Labor Day.
Our columns have been absent this week due to our presence in Santa Fe, New Mexico, where we’ve been covering the Santa Fe Opera’s summer season, which peaks during the month of August. Good thing. Phony economics and political reporting, as discussed above, have made investing into a nightmare of uncertainty. For that reason, we’ve held firm in our conservative, preferred stock-leaning portfolios and have not made a single move this week thus far.
Charts and fundamentals aren’t working right now, so we continue to use them as useful guideposts, but are having to resort to seat-of-the-pants market navigation until such a time as some measure of rationality gets back into these markets.
One bright side for our largest portfolio was the reporting of flat earnings by Teekay Tankers (symbol: TNK), our long-suffering play on the oil tanker business. The earnings were flat primarily due to the company’s efforts to pay down debt–an activity that also led to yet another dividend decrease. That’s a short-term disappointment when compared to the long-term positive effects of that debt paydown activity, so we’ll stick with the stock for now. It’s gotten a nice bounce today after the financial news began to sink in.
The Dow is up nicely today, our conservative portfolios are up modestly despite increased Fed interest rate increase speculation based on those phony job numbers. So we’ll just get back to the opera tonight. We return to Washington, perhaps briefly, early next week where we’ll do a closer analysis of the Wall Street tea leaves.