Unemployment in the United States hit a record high of 10 million this week. Many economists expect those numbers to rise even further due to the rapid spread of the Covid-19 pandemic.
However, Todd Horwitz of Bubba Trading says the numbers are “worthless and meaningless because we know it’s going to happen, this is not a surprise.”
He explained to Boom Bust that the figures are “not because of a major economic slowdown” but because companies have to close and many businesses will never come back. There’s going to be a problem in the supply chain, he notes.
The strategist continues: “I mean, I felt that we [were] already in a recession before we got to this part, but this is just all news-driven and again you’ve got to shut down, so businesses have to lay off employees. That’s what we’re trying to see them avoid by all this free money they are now given by the Fed.”
According to him, “it’s not a surprise and we shouldn’t be shocked by it because these numbers are artificial, because once we go back to work and once we can open up the country we’re going to be back at normal rates.”
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