This morning's unemployment number didn't surprise us whatsoever. The US unemployment rate continues to increase, monthly. At 5.7%, this is certainly not the end of the unemployment cycle. With US bankruptcy filings ramping up this week, I think we're still closer to the beginning, rather.
Everything levered to cheap money has either crashed, or is in the midst of crashing. Commodities of course were the hold out, until they had their worst month in 28 years (July).
In a market where access to capital continues to tighten alongside cost of capital rising, CASH IS KING.
- Keith R. McCullough
Chief Investment Officer
Research Edge, LLC