'The market has a chance of exploding to the upside,' says investor
Kevin Paffrath, Financial Analyst and YouTuber 'Meet Kevin,' reacts to the January jobs report.
You can see the full interview here.
Key video highlights
00:10 On jobs numbers adjustments
00:18 'One report does not make a trend'
00:24 On adding to your portfolio
00:55 On economic recovery, 'we might be Nike swoosh recovering...'
KEVIN PAFFRATH: When I first got the report, I was blown away because I thought, uh oh, this is terrible. But I actually read it with a little bit of a contrarian suspicion that maybe these January-to-January adjustments are just seasonal adjustments, and really what we've got to look at is, as Jerome Powell has taught us, one report does not make a trend.
And absent a black swan, I think we're slow up from here. I actually think now's the time to add. The market has a chance of exploding to the upside once we get that consistent, solid data that that wage-price spiral isn't here, and we've got to listen to Jerome Powell when he tells us he sees a substantially lower risk of a wage-price spiral. The ECI report came in weak, and it's very clear that wage gains are falling. We're just gaining at an annualized rate of 3.6% on wages now from the report this morning.
So look, I think Julia's right when she says we're in kind of a fairy tale and we should be pinching ourselves, adding right now to our portfolios, and we might be Nike swoosh recovering from here. Hopefully we break out of this trading range that we just heard about as well and it's up from here.