Panic Isn’t An Investment Strategy

On this morning’s Trey Ware Show, Karl & Trey discussed the strong economy. Although it’s been decelerating, there was some very good reports last week.

Trey Ware:                         Karl, did we really get some good news on the jobs front on Friday? That was good.

Karl Eggerss:                      Yeah. You know, I’ve been saying that I think in the last month or so, we’ve had two out of three things that I’ve been looking for that were in the positive. The one thing we weren’t getting was some positive economic news. We kept seeing kind of weaker than expected, not horrible, but just weaker than what we wanted, economic reports. And Friday, we got really good reports. It wasn’t just the jobs report. The jobs report was a blowout number. Now, granted, the one before that got revised down, but net and net, they were very good job. We got a great jobs market. Very tight labor. We have the wages going up, so it’s all really-

Trey Ware:                         Well, listen to this. A 100-straight month of gains. The unemployment rate went up, but that’s because the labor force participation rate went up. That means people are getting reengaged back in all this instead of sitting on the sideline, and average hourly earnings are up almost four percent this year.

Karl Eggerss:                      Yeah. I mean, you know, we have the tight labor market, and then on top of that we had … I mean, this is kind of, it didn’t make the headlines, but we had a great manufacturing report that came up Friday. We have a lot of the inflation numbers are still paying, so all in all, right now, I think we have all three boxes checked where we basically have the Fed on the sidelines, we have the trade war is progressing. As I said, we need progression. We don’t need a deal today, but we do need to keep seeing progress made, and we’re seeing that. We saw that Friday. And then on top of that, we got good economic numbers.

Karl Eggerss:                      All in all, we have all three boxes checked right now, and that is what we need to keep this market going because we’re still seeing the stock market’s still up about seven or eight percent this year, and I still have people emailing me saying, “Hey. I panicked out last year. What do I do now?” And this is why, A, you got to have a strategy, and B, you don’t panic out. You have to have an allocation that makes sense to take in consideration the good and the bad news. You know, we’ve had a complete opposite 20 of January than we did December.

Trey Ware:                         Yeah. Yeah, never panic. Stay cool, everybody. Stay cool. Don’t panic.

Trey Ware:                         All right. Karl Eggerss from eggersscapital.com, as always, on Monday at this time.

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