Speaking of moments, have you ever been to a Magic Show? I use to take my family to watch the Illusionists during the break. Phenomenal entertainment that blows your mind leaves one in awe, wondering how the heck did they do that?

Well if we apply the same method to employment data, it could leave you a little dazed and think to yourself, WOW how can this be? I am of the belief when something is too good to be true, it usually is. Canadian Employment Data showed 55k new jobs created as the unemployment rate dipped to 5.9 from the previous (6.0).  Shockingly good numbers during a chaotic time of mandates. On the American side, the Non-Farm Payrolls gained 199k expecting (400k) yet the unemployment rate dips to 3.9% vs previous (4.0%). 

Personally, I speak to many people in business who discuss a different reality. During the first lockdowns, financial assistance was provided and things were somewhat manageable. Consequently, the support for the latest lockdowns has not been as readily available putting much of the onus on entrepreneurs to find ways to sustain themselves. In many businesses, the staff becomes the first casualty. Therefore what we could be witnessing is an illusion of hiring which is more a mirage than sustainable. As a result, the numbers may be reflecting a false reality or false positive like the PCR tests no one can seem to get their hands on.

At the start of the week, The Federal Reserve Chairman was granted another term. Jerome Powell, unequivocally stated he will use all tools available to bring down inflation. But the question remains at what cost to the consumer and the economy?  Today CPI, a reflection of inflation hit 7% in December as expected. Keep in mind this is for a selected basket of goods as inflation can be running a lot higher.