Newsletter #18: NFP mirage, the strength of the market is deceptive

Welcome to the eighteenth edition of this newsletter, dear readers! NFPs – the labor market report aka the MIRAGE The markets went ballistic on Friday due to a "strong" US labor market report. However, most market participants overlook the reality of this "mirage." The figures were inflated by a government model whose reality can be questioned. The report claims that 177,000 new jobs were created. The reality: a model called "birth/death adjustment" added 393,000 jobs "out of thin air." This model estimates how many businesses were opened or closed. It is not based on verified registrations or bankruptcy data, nor does it...