The Slight Depression
The Slight Depression
Why jobs added or lost won’t have a big effect on the tech stock markets in the future
I have a wild thought of the day.
I don’t think job creation is that important when it comes to tech stocks and tech rallies in the future.
In the era of accelerated technological advancements and revolutionary influence of AI (Artificial Intelligence), there is a paradigm shift happening between the biologics and the non-biologics.
Sure tech companies will need a strong workforce, but I don’t think they need an excessive amount of employees like in the past.
In the AI era with new AI developments, deep and machine learning to optimise and maximise operations and profits…
I think we WILL undoubtedly see a major disruption in the employee force.
But here is where it gets scary…
Those who adapt, grow and evolve will make it.
Those who don’t might, fall behind and into what I call.
The Slight Depression
This is where things are getting tough and more expensive.
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Salaries are staying the same while prices are going up.
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Groceries you have to think twice when buying cereals.
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Flights are crazy.
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Rates and taxes are just ridiculous.
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Some restaurants are out of their minds.
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Don’t start with mortgages, bonds, insurance and medical aid.
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Filling up a tank of petrol is showing off nowadays!
Clearly, there is a shift between the lower and upper class.
Where I truly believe the middle class is falling away very quickly.
Soon it’ll be lower and upper class!
No in between and that scares me!
So…
The onus now lies YOU.
You really need to adapt, adopt and integrate to this rapidly evolving landscape.
Foe examples, if you possess the skills to work alongside AI, harness its potential, and contribute to its development, you’ll stand a chance in the job market.
If you continue to learn new tricks, no matter how old or young of a dog you are.
If you continue to upskill yourself.
If you invest in yourself (physically, mentally and financially).
You’ll have the upper hand.
What are your thoughts for part 1 of what I have to say?
Do you think The Slight Depression is among us? Answer yes or no.
Comment now then come back.
Part 2 – Why a Lower NFP isn’t even that bad anymore for Tech stocks
Why jobs added or lost won’t have a big effect on the tech stock markets in the future
Every month, I get asked about NFP (Non-Farm Payrolls).
This is a barometer that comes out on the 1st Friday of every month.
It tells us one thing.
Whether the number of jobs were added or lost in the US economy for the previous month (excluding farming jobs).
Well let’s take the NFP number coming out today (1 September 2023)
Prior was 187,000 and the Forecast is 170,000.
So already, they are guessing there’ll be 17,000 less jobs added this month compared to last month.
In the past I would say, anything less than 170K might be a cause of concern to the stock market and companies (especially in tech) as less people were assigned jobs.
But this month, I have a shift in mind and thoughts.
If NFP comes out worse than expected…
I don’t necessarily think this will have a bad effect on the NASDAQ.
In fact, the Nasdaq is showing strong signs of upside to come in the next few months.
And companies like Nvidia, META, Alphabet, Microsoft, IBM and even Tesla, I believe, will do just fine cutting jobs and building their empires simultaneously.
And whether the NFP drops or rises, NASDAQ along with tech stocks will do just fine.
With AI taking over, I don’t think job creation will reflect the true strength of an economy as in the past.
What are your thoughts about this wild idea.
Is the NFP not going to be as significant with digital bodies replacing humans for jobs, research and innovations?
And also what do we do as a people?
Let me know your thoughts because THEY will not help us.
We can only help each other.
Trade well, live free.
Timon Rossolimos
Founder, MATI Trader
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Timon Rossolimos
Founder, MATI Trader
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