Market Whiplash

It may not feel like it but the stock market has found a base of support I think defines the worst of this uncomfortable correction.

The S&P 500 has bounced off the 2,600 level not once, not twice but three times.

Why?

There’s so much money sloshing around the global financial system that’s looking for a home, and the U.S. economy is still the fastest-growing developed market.

SPX

Speaking of Strong…

The latest jobs numbers showed average hourly earnings climbed 3.1% in November on a year-over-year basis. That matched the October gain and gives our economy two back-to-back monthly wage gains that are the highest since 2009.

“President Trump’s policies continue to fuel strong and steady job growth. Wage gains remain steady. Paychecks are growing,” said Labor Secretary Alexander Acosta.

The jobs market is one of the most reliable economic indicators there is, and as long as we continue to see strong job and wage growth, there is very little chance of a recession.

table

The Longest Streak Since 1970

New jobless claims have showed amazing economic strength. New claims have been below 250,000 a week for 61 weeks in a row, the longest streak since January 1970.

That streak is even more impressive when you factor in the population growth over the last 47 years. There were 205 million Americans in 1970, so 250,000 jobless claims were a much higher percentage of the U.S. population, which makes today’s numbers even more impressive.

Until we see initial jobless claims increase instead of decrease like they are now, you should remain very confident in the U.S. economy.

Add in carefully orchestrated rumblings from the Fed about a pause in interest rate hikes. Federal Reserve Chairman Jerome Powell recently said that interest rates are “just below” neutral and that strongly suggests that the Fed is done — for now — with rate hikes.

That would be like pouring gasoline on the stock market and push stock prices much higher.

My advice to you even if you have market whiplash?

Continue to hold onto all your positions.

Here’s to growing your wealth,

Mike Burnick

Mike Burnick
Chief Income Expert, Mike Burnick’s Wealth Watch

Editor’s note: My colleague and No. 1 pot stock expert Ray Blanco has an explosive new opportunity for you…

The war on pot is drawing to a close… This could be your last chance to get in cheap and turn mere pocket change into a FORTUNE!

You need to take action ASAP. Click here to claim your stake by midnight December 15.

You May Also Be Interested In:

Mike Burnick

Mike Burnick is the editor of Mike Burnick’s Wealth Watch, Infinite Income, Amplified Income and Millionaire Moments. Mike has been bringing his trading strategies to the masses for over 30 years. He has been with Seven Figure Publishing since 2017. In 2018, the average return of Infinite Income beat the...

View More By Mike Burnick

LEARN TO TRADE LIKE A PRO WITH THE SEVEN FIGURE PODCAST! [CLICK HERE]