Goldilocks jobs report?

[] The market liked it Friday [View in browser]( [View in browser]( [] MAY 6, 2024 [] [] PROSPERITY PUB MARKET TALK Goldilocks Jobs Numbers? Investors Cheer as Rate Hikes Start to Bite Friday saw a curious reaction in the markets. The US economy added fewer jobs than expected in April, with unemployment ticking slightly higher. Sounds like bad news, right? Not quite. Investors cheered, sending stocks soaring. Here's why: These "Goldilocks" jobs numbers might be just what Fed chairman Jerome Powell ordered. While a slowdown in hiring might seem concerning on the surface, it signals that the Federal Reserve's interest rate hikes are finally starting to have their intended effect — cooling the overheated economy and possbily starting to bring inflation under control. The Fed's goal is to achieve a "soft landing," where inflation slows down without triggering a recession. This requires a delicate balance. Raising rates too quickly could stall economic growth too abruptly. But if the Fed waits too long, inflation could become entrenched, leading them to have to resort to more aggressive measures later. Here's the key to understanding the market's reaction: it takes time for interest rate hikes to work their way through the system. As our own experts, Geof Smith and Jeffry Turnmire, have highlighted, it can take 18-24 months for the effects of interest rate hikes to fully be felt by the economy. Between March 2022 and July 2023, the Fed raised rates 11 times, but has held steady since last summer in pursuit of the “soft landing” scenario. [] The April jobs report suggests that the first effects of the interest rate hikes might be starting to hit the jobs market. The slowdown in hiring, along with a slight rise in unemployment, indicates that businesses are becoming more cautious about adding new staff in the face of borrowing costs that are gradually rising. This could be a sign that inflation might soon peak and start to come down. While the long-term effects remain to be seen, the Goldilocks jobs report offers a glimmer of hope for the Fed. It suggests they might be able to achieve their soft landing by slowly tapping on the brakes of the economy without slamming them on entirely. Investors, for now, seem cautiously optimistic. Another bit of news that flew under much of the mainstream media’s radar is that the Fed will drastically reduce their Quantitative Tightening campaign — essentially slowing the rate, by more than half, at which they “unprint” money. Both scenarios are welcome news to investors and should help bolster markets. — The Prosperity Pub Team [] [] NOT Your Average Mid-Year Market Outlook! Roger Scott just shared with his TOP PREDICTIONS… On election volatility… interest rates… oil… gold… cryptos… And a shocking S&P 500 price forecast you can’t afford to miss! Plus, he even gave out his #1 Election Stock! [Click here to get Roger’s full analysis!]( [] [] GUEST POST: JACK CARTER It’s All Greek To Me People are shocked when I tell them that I’ve been in the markets for almost 40 years. I’ve been trading options and making money for decades… I’ve even been a Wall Street market maker… And I don’t know or understand the Greeks! [You just don’t need them to trade successfully…]( Trade well, — Jack Carter [] [] [] [] MAY 6, 2024 [] [] PROSPERITY PUB MARKET TALK Goldilocks Jobs Numbers? Investors Cheer as Rate Hikes Start to Bite Friday saw a curious reaction in the markets. The US economy added fewer jobs than expected in April, with unemployment ticking slightly higher. Sounds like bad news, right? Not quite. Investors cheered, sending stocks soaring. Here's why: These "Goldilocks" jobs numbers might be just what Fed chairman Jerome Powell ordered. While a slowdown in hiring might seem concerning on the surface, it signals that the Federal Reserve's interest rate hikes are finally starting to have their intended effect — cooling the overheated economy and possbily starting to bring inflation under control. The Fed's goal is to achieve a "soft landing," where inflation slows down without triggering a recession. This requires a delicate balance. Raising rates too quickly could stall economic growth too abruptly. But if the Fed waits too long, inflation could become entrenched, leading them to have to resort to more aggressive measures later. Here's the key to understanding the market's reaction: it takes time for interest rate hikes to work their way through the system. As our own experts, Geof Smith and Jeffry Turnmire, have highlighted, it can take 18-24 months for the effects of interest rate hikes to fully be felt by the economy. Between March 2022 and July 2023, the Fed raised rates 11 times, but has held steady since last summer in pursuit of the “soft landing” scenario. [] The April jobs report suggests that the first effects of the interest rate hikes might be starting to hit the jobs market. The slowdown in hiring, along with a slight rise in unemployment, indicates that businesses are becoming more cautious about adding new staff in the face of borrowing costs that are gradually rising. This could be a sign that inflation might soon peak and start to come down. While the long-term effects remain to be seen, the Goldilocks jobs report offers a glimmer of hope for the Fed. It suggests they might be able to achieve their soft landing by slowly tapping on the brakes of the economy without slamming them on entirely. Investors, for now, seem cautiously optimistic. Another bit of news that flew under much of the mainstream media’s radar is that the Fed will drastically reduce their Quantitative Tightening campaign — essentially slowing the rate, by more than half, at which they “unprint” money. Both scenarios are welcome news to investors and should help bolster markets. — The Prosperity Pub Team [] [] NOT Your Average Mid-Year Market Outlook! Roger Scott just shared with his TOP PREDICTIONS… On election volatility… interest rates… oil… gold… cryptos… And a shocking S&P 500 price forecast you can’t afford to miss! Plus, he even gave out his #1 Election Stock! [Click here to get Roger’s full analysis!]( [] [] GUEST POST: JACK CARTER It’s All Greek To Me People are shocked when I tell them that I’ve been in the markets for almost 40 years. I’ve been trading options and making money for decades… I’ve even been a Wall Street market maker… And I don’t know or understand the Greeks! [You just don’t need them to trade successfully…]( Trade well, — Jack Carter [] [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](