End of bull market? Labor market is heating up, brace for higher wages, inflation - Jim Awad
Nonfarm payrolls grew at 531,000 in October, more than the consensus estimate of 450,000. The unemployment rate has fallen to 4.6%, down from 4.8% the previous month.
Jim Awad, managing director of Clearstead Advisors said that a recovering labor market is a sign of higher wages to come, which in turn will cause higher inflation and higher interest rates.
Speaking to David Lin, anchor for Kitco News, Awad said that stagflation is not likely going to come.
"I think growth is real. The pent-up demand is real, it'll be higher growth with higher inflation and higher interest rates," he said.
The markets can handle higher interest rates up to a level, he added.
On investments, stocks are still the place to be in the current environment.
"I think you have a 12-month window here where you can make good money [in the stock markets], especially relative to cash and bonds, with profits growing and the economy growing and interest rates, while they'll be rising, they will not be at a danger level for the next 12 months," he said.
For more information on the labor markets and Awad's take on meme stock investing, watch the video above.
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By David LinFor Kitco News
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dlin@kitco.comwww.kitco.com