Another day of pondering the art versus science of investing:

Chris Leary
Managing Director

The non-farm jobless rate rose 209,000 and the unemployment rate fell from 3.7% to 3.6% “not as much as economists expected.” I think expected is an art word as it is a thought, guess or musing.  It is actually a survey. There is a reason a census of actual reporting is done very infrequently. I am dating myself, but I believe the only time government statistics were not revised was during the many month shut-down years ago.  As I have said before, who would think in the work of AI and undefinable computing power that weather professionals are more accurate than economists? There is a large component of the population that loves intrigue, the unknown, venture capital and art.

One aspect of the art of investing is the vantage point we look at things. Sadly, investors are still digesting the COVID charged data as the new normal.  It was the financial vaccine to a terrible virus. The recent revision of GDP to 2% used to be a booming economy. If you compare virtually any data released in the last 90 days, they are dead center bulls-eye of targets desired three years ago.  But just like the pig through a python, we need to wait.  FOMC actions taken this year are working and in spite of the continual comments of draconian action, they are working. Differences of opinion make markets. Odds of winning and losing create wagering. Much has been written that the strongest trading markets also is where there is a strong gambling mentality.

Investors crave price action – market volatility. Without big moves, hedge funds cannot survive. The entire financial planning and investing employment pool needs change to ensure jobs and growth. Without the fear of not having money, would we all just spend hours at the dollar store? By the way, Amazon Prime days are July 11-12.

What is the difference between a painting by Jackson Pollack or Andy Warhol versus a Vincent Van Gogh or Albert Bierstadt? Hopefully we never look at them as just paintings.