Mike Giordano, CFP®
michael@wwmgreenville.com

We all have our stories—the ones we love to read or watch. Some of us love happy stories. For others, it’s inspirational stories. Some even enjoy a sad story.

When I was a kid, my siblings and I would visit my grandparents in New Jersey. My grandma didn’t care much for tv. She thought it was very trashy. But she loved “her story,” Guilding Light. Yes, it too was trashy, but still, she loved it.

Guilding Light was a popular soap opera and each afternoon, she was glued to that 25” console. My grandma was a sweet lady who would do anything for us. Just DO NOT interrupt her in the middle of her story. I knew well enough to wait until the episode was over to probe the storyline—understand who was cheating on whom. Who was the latest backstabber. All good stuff!

My wife enjoys Hallmark movies and familiar shows she’s rerun countless times. She finds renewed joy rewatching a series in a new season in life.

Wall Street loves stories about numbers and how they connect. But, since numbers aren’t nearly as exciting, Wall Street finds more familiar characters to help tell the market’s story. One of the Street’s most popular characters is the classic, Goldilocks. She doesn’t want her porridge too hot or too cold. Too sweet or too salty. She wants it just right.

So, instead of using numbers, the Street describes a “just right” financial situation as Goldilocks.

That’s just what we got with Friday’s latest read on the economy. The April jobs report continued to show strong hiring, but at a slower pace. It also continued to show strong, but slowing wage growth. The unemployment rate ticked up, but only fractionally.  Nothing was too hot or too cold.

It was the perfect report for that “soft landing” in which the economy cools just enough to stabilize prices without causing widespread layoffs. This is exactly what the Fed has been hoping to see.

The big question is: can this “just right” condition persist?  We’ll know more in the coming months.

To button this up, let’s take a look at Wall Street’s TV Guide. Remember that magazine?

Goldilocks is the show currently running. The hope is the next show will be a Hallmark movie and not some drama-filled, trashy soap opera. We can save that for Grandma and her TV up in heaven.



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All views/opinions expressed in this newsletter are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.  Indexes are unmanaged and do not incur management fees, costs, or expenses.  It is not possible to invest directly in an index.

A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.