The Negative Effects of Job Losses on the Market

Some people are pricing in Fed rate cuts in the back half of this year. But once you start to have the employment go down, the impact on aggregate demand is negative and then you get declining consumer spending which feeds right into a more pernicious profits recession. And yeah, the Fed I think will be cutting interest rates, but I don't think you're going to find a time in a recession. People still don't understand that we're living through a very unusual period Right now it's not normal for the yield curve to be below long term rates. We can dream up all sorts of reasons why markets were ultimately bottom when we're 70%.

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