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4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
So we’ve talked a lot in the past year about the relationship between the jobs market and inflation. Could you share your thoughts on that, on the latest on that front?
David Nelson:
Yeah, the labor market continues to be really strong. It’s just shocking and considering as far as that it’s taken place in an environment where interest rates have gone up north of 5%. It’s just astounding. But inflation is still above what the Fed’s target rate is, so everyone’s paying close attention as far as to what’s happening here. The chart that I have drives home this point as far as the importance of what’s taking place with payrolls.
And so what we’re looking at here, if you go all the way to the right, you’ll see the latest changes as far as on labor and what’s taking place there. We added 336,000 jobs in September. Now, that’s a pretty large number for any period, but basically what took place is this was double the expectation of any forecaster out there. So it’s a real surprise that took place during this window.
Brandy Auterson-Hurst:
So what implications does this have for viewers’ investments?
David Nelson:
Well, I think the Fed’s message as far as interest rates higher for longer continues. That’s really, really important because those individuals that have been looking for rates to be cut in the foreseeable future, probably going to have to wait a while for that. So what it does is it makes interest rate sensitive investments, probably utilities, bonds, things of that nature. Most likely they’re going to be not out of the woods for quite some time, the way that it looks based on this most recent data.
Brandy Auterson-Hurst:
All right, David, as always, thanks for joining us.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on our quadcities.com.