Today the Bureau of Labor Statistics revised their job reports and you guessed it – down again. Who is Trump going to fire now? It is evident that Trump inherited good and booming economy  (as was reported many times, the economy that the entire world envied us) and ruined it. Of course, what would you expect from a conman, moron, and economic ignorant who bankrupted two casinos to do otherwise, right? I can’t believe that there is still almost 40% of Americans who still think Trump is their savior and good for the economy.

So let’s review the charts:

The chart above is from the BLS. See the drop in labor statistics? See how well it corresponds with Trump’s trade wars he started in April? Look at the S&P 500 chart and how well it corresponds with his stupid wars:

 

 

The market crashed exactly in anticipation of what is happening in the labor market today. So why the recovery and new ATH? It is my opinion that the market refused to accept the damage Trump has done to the country and to our economy. His tariffs on and off were seen as something that can mitigate the catastrophe so it rallied. But it is in a bubble territory and sooner or later the market will correct, unless the underlying data drastically improve which doesn’t seem to be happening.

The US economy is consumer driven. Spending is what fuels our growth. And spenders are going away. Why? High inflation, high prices, low job creation, unemployment rising. Wall Street bulls are still banking on earnings, but without spending, there will be no earnings. And disappointments are ahead of us. It is just a matter of time.

How to prepare for it?

Well, you have two options, ride through it (but be prepared to sit on losses for years if the decline will be like 1930 or similar recessions), or start trimming your positions and increase cash (for example parking your money into funds like ICSH or SGOV that provide fairly good protection against panic and pay dividends).

Stay safe and fuck Trump!