#usoligarchs

4.01.2022: The stock market continues to climb back from correction portending lows. It is trading relatively flat today although the Dow, S&P500, and Nasdaq are in green territory with about an hour left in the trading day. The stock market remains fertile ground for investors even with the recent gyrations.

U.S. employers added 431,000 jobs in March, unemployment fell to 3.6%, and average hourly earnings rose 0.4%. Women jumping into the labor force accounted for the bulk of the increase in jobs, and that is a good sign as well as the revision upward of 95,000 of the January and February figures. While the strong labor report demonstrates a resilient U.S. economy, inflation concerns continue to prevail, and a Federal Reserve move of 50 basis points is highly likely next month. Additional rate hikes totaling 200 to 225 basis points, or 2.0% to 2.25%, are virtually baked in for the remainder of the year. The Federal Reserve is playing catch up to runaway inflation approaching 8.0%.

Buying a new home continues to get more expensive. Home prices are rising, and the average 30-year mortgage rate is hovering at 4.5% which is well over 100 basis points, or 1.0%, from this time last year. Slim inventories of homes factor in as well.

On the political front, Washington is working on retirement savings reforms through the Secure Act 2.0 which is critical when roughly a quarter of U.S. adults do not have retirement savings. Confirmation of the next Supreme Court Justice is likely next week, and the Hunter Biden saga continues to have legs. Payments from Chinese state-owned entities do warrant further investigation. If there is nothing there, then so be it. Title 42 expires today. Senators Sinema and Kelly are apparently pushing the administration to address the border crisis. Perhaps if they held back a few of their party line votes in a 50-50 Senate, their voices would be heard. Releasing oil from the strategic petroleum reserves for the next six-months seems like a patch. The U.S. has been energy independent in the past - why not now? Should we start talking about U.S. Oligarchs? That terminology is not in the mainstream, but perhaps we should pay attention to the political overtones.