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

[BigBalls]

Good post, thanks for sharing your fund managers thoughts.

“ 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.”

And that is why I’m having such a hard time divesting from my Tech stocks. I’m making money hand over fist with tech stocks. I’m very uneasy with being so highly concentrated in the sector. Before the 2008 crash I was holding a lot of financial stocks. Because they were doing great for me. Until they weren’t. And they crashed almost overnight. I think Tech, thanks to AI still has room to run. It would be nice to see jobs reports, my instincts tell me job losses are continuing to climb. Q4 is when we see companies prepare budgets for 2026 and trim headcount, there seems to be heavy RIF’s ( reduction in force) but without labor reports all we have to go on is instinct. I’m counting on the Fed continuing rate decreases to bolster corporate profits. I don’t think rate or tax cuts will increase investments in employment or R&D. I think it will just bolster corporate profits, in the short run I’m fine with that.
Inflation is here to stay, definitely sticky. Not runaway inflation but a persistent steady drip. You’re right, the markets are accepting inflation at current level because the Fed has made it clear that it prioritizes jobs over inflation. Looks like the Fed is almost done with QT ( quantitative tightening). Housing needs a lift, that sector has been in a recession for almost three years.