Reply To: 11/06/2025 October Layoffs Highest in 22 years

[RWC]

My fund manager just hit on some of the points you brought up and it’s interesting:

AI and Automation are really boosting output while trimming head count. You don’t see a lot of people, a huge amount of Cap Ex and productivity is exploding everywhere. Great for margins but not so good for workers. A caution flag aimed at jobs not growth.

Sticky inflation, health care, education and insurance. The Fed can raise or cut rates all they want but he thinks those costs are unlikely to budge because they’re not tied to borrowing. He feels the bigger picture looks mostly calm with inflation cooling not crashing and the broader market seems fine with that. Stripping out healthcare there’s actually negative job growth which means the potential December cut looks less like risk and more like relief.

On the other hand, profits are gushing, and big tech’s free cash flow is huge fueling mergers and acquisitions. Tech’s cash spigot is open.