There was a plethora of economic data on which Non-Farm Payrolls (NFP) were the most anticipated.  NFP grew by 187k anticipating (200k) while the unemployment rate dropped 1/10th of a percent to 3.5% from (3.6%) in America. Last week I did mention this number could definitely be skewed as the participation rate remained constant at 62.6%, supporting the fact more people are needing secondary income to keep up payments to maintain their lifestyles.

Crossing the border to the North, when something is too good to be true, it usually is, unless you live in Alberta. After previous exceptional employment numbers, the Canadian economy expected a net gain of 21,100 new jobs instead it lost a net 6400 jobs in July. Consequently, the unemployment rate inched upward to 5.5%. Further, Ivey Purchasing Managers Index dropped substantially to 48.6% in July from the (52.7%) expected. People could be concentrating on Needs rather than Wants.

Governments continue to dole out money to demonstrate to the people that they are answering the call to their suffering. Inflation will decrease until Governments cut spending and Central Bankers stop printing money! It’s almost that simple.

Rate hikes might be slowing but they aren’t disappearing. The 10-year bond market, a barometer of interest rate direction, surpassed the 4% mark—translation, further rate hikes are possible in the 3rd and 4th quarters. Buckle down, and cut costs wherever you can. This could become a nightmare scenario for many families living beyond their means as they try to cope. It might be best to cut the cord, downsize and retain as much equity as possible.  Let the expert cement reality into your day, Click below;

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The difficult part is that people are now at an advanced age, worked a lifetime, and everything seemed worry-free. All of a sudden, wages aren’t keeping up with inflation, and a revolving credit line allowed to make purchasing larger ticket items much simpler by allowing people to extract equity from their homes. The cost factor is now inhibiting many of the luxuries they thought they could afford. Now people are faced with options that may not be as appealing.  It isn’t easy to start from scratch when people have worked a lifetime to accumulate assets at this point in life. It’s about working with intelligence rather than physicality and managing finances. Otherwise, one Man’s junk becomes another Man’s gold.