Jobs & The Covid Recovery: Can It Last?

Jobs are up and gold is down. Labor is short while rent is free. Is the Delta variant going to derail the recovery? Is Andrew Cuomo going to jail? Does Stansberry rip off our ideas and sell them as its own? Plus: What copper and the VIX are telling us.

All that — and more — is in this week’s edition of Bizarro World. We start, as we do every week, with the markets. You can get a taste of it below or click the image to listen.

— Nick 

(Click to Play)

Gerardo Del Real: Let's get into the jobs report. We kind of saw this coming. We talked about this last week and the week before, about the possibility of a robust jobs report maybe being a bit detrimental to gold in the near term. And I personally think that's exactly all it is. Gold went down $100 in a week. Silver got hit pretty good. It's down below $25 bucks. But I actually happen to think that gold and silver are doing exactly what they’re supposed to be doing. I don't see this pullback in light of the robust jobs numbers as detrimental to the mid- or the long-term price targets that I have. Thoughts on your end of it?

Nick Hodge: It was an interesting week. I mean, the report was good. The number was 943,000 jobs added in July. So you're still getting that recovery. I think what I was saying the week before is that the recovery is not going to continue at that sort of V-shaped pace, right? It's going to start to level off. And so it's good to see jobs come back. If you want to have the glass half full, you would say that we're still five to eight million jobs less than we had before people knew what COVID-19 was. And so there's still a lot of jobs to come back. The market clearly liked it. When I say the market, I'm talking about the stock market, the S&P 500. The stock market liked it. The S&P is back to all time highs, tech stocks doing pretty good, NASDAQ back at all time highs as well.

And so I was talking about a rotation: It being harder for stocks to hit highs and it being better for gold. It remains to be seen if that's the right "call" or if that jobs report today is going to portend something else coming in the market. I guess a couple of other points is that volume has been extremely low. And so that's not a full representation of the market when the full breadth of volume isn't in there.

Bond yields have perked up a little bit. Another reason that gold is selling off. Gold needs to get itself back closer to $1,800 — and sooner than later — before this cycle starts going the other way. And that can totally happen as well. So yeah, a lot of interesting data last week that sort of, at least for me, was antithetical to what I thought was happening. Maybe not totally surprised by the jobs number, but the markets really seemed to like it. Stocks really seemed to like it, and gold didn't. And so, like I say, we'll see if that's anomalistic or not.

Gerardo Del Real: Everything is awesome. The Dow and S&P are at record highs again. I'm sure Harry Dent is somewhere pulling whatever hair he's got left out.

Energy remains one of the better-performing sectors of the market, especially clean energy with the infrastructure bill now passing the senate. Billions are earmarked for the grid.

Continue the discussion here with my top clean energy stock right now. 

Call it like you see it, 

Nick Hodge
Editor, Daily Profit Cycle

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Foundational ProfitsFamily Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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