The Effective Unemployment Rate This thought came to me a couple days ago, but been too busy to post it here. With the $600/week CARES money, unemployed people weren't totally unemployed in the sense that one characteristic of not working is one does not receive money to pay for stuff. Clearly that amount of money was not inconsequential as some people were receiving more money being unemployed compared to their previous employment. Now the point is that I don't think the effective unemployment rate was as high (11%?) as what the news readers were reciting. So now it is looking like that CARES money is all but disappearing; best case sounds like $100/week which barely covers utilities and car/heatlh/life/etc insurances. Basically I'm thinking there should be a spike in the "effective" unemployment rate, the rate adjusted for non-standard government checks.
So the other thing I think about with unemployment is that the jobs that "came back" were the low hanging fruit. Jobs that can be performed outside the public. Many public domain jobs are never coming back as those companies couldn't hold on. Now with the reduction of unemployment and those dollars not being spent even the non public jobs will start being paired off.
Looks like the loss from INTC is the gain for TSM and AMD. Has to be frustrating if you are the INTC shareholders when other semi stocks keep running higher
Many Techs looked good today but couldn’t hold the nazzy up. I think we get some news this weekend on congress stimulus. Have a good weekend everyone.
