Good Morning on this Terrific Thursday,

The jobs report released a day early today, due to the holiday, was a blockbuster. 4mm new jobs created and the unemployment rate down to 11.1%. That would be great news if it sticks. Will it, is still up in the air. I suspect some of that is attributable to states reopening and some workers going back to work. The down side of that is the unemployment claims were also reported today and those were still very elevated at 1.4mm+. Stocks  jumped on the news and bonds took a hit early on. That has since reversed a bit with equities halving their gains (Dow +200) and bonds positive on the day. With the holiday trading schedule, we only have about 30 more minutes for trading today and the bond market is closed tomorrow. Hopefully we can finish up at these levels and go out on a good note. We may see some negative price changes this afternoon as lock desks tend to get conservative when trading shuts down but they are still open.

I know I have talked about the stock markets being overvalued and fueled by speculative “RobinHood” investment. Here is a great graphic form the WSJ on what that actually looks like. If you are in equites, be careful as the institutional money in the long run wins every time.

Trends in institutional vs. retail investor positioning have diverged.

Please remain safe and healthy, enjoy the holiday weekend and make today great!