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July 16, 2022 | Layoffs Compound Economic Downturn

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Understanding the link between ultra-loose financial conditions over the past few years and the tech sector boom, jobs, housing, the stock market, and economic growth is key to anticipating the bust contagion. This video segment connects the dots well.

Companies like Tesla, JP Morgan, and Zillow have announced layoffs in the last 30 Days. In particular – the CEOs of the companies think the Recession and Market Crash are going to get worse. Elon Musk predicts that: “the US is already in Recession. And that it could last 18 Months”. He also thinks a lot of companies will go bankrupt. That would be why Tesla just announced layoffs for 10% of its salaried workforce.

Despite this surge in layoffs, the US Unemployment Rate is still at a near record low 3.6%, while Initial Jobless Claims are also low. That means, unfortunately, that the Stock/Housing Market bottom has not yet occurred. And that more job losses/layoffs will be coming in 2022. Here is a direct video link.

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July 16th, 2022

Posted In: Juggling Dynamite

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