Looks like a fairly quick bounce back for the stock market after the hotter than expected employment numbers. Normally such 'good' news would be welcome, but in the current inflationary environment the hope was for weaker employment and wages, to help reign in inflation.
However, the prospects for a 'soft landing' and milder recession are enhanced by this strong employment data, as are prospects for corporate profits in 2023. The other aspect is that if - a) the current inflation is mainly coming from the supply side (supply chain disruptions), rather than the demand side, and - b) if these supply disruptions are being gradually ironed out (aided by China's less strict Covid lockdown policies), then inflation can come down even with continued resilience in the US labor market.
Anyway, the 'glass half full' perspective appears to be reflected in the movements of the stock market, at least for now, and barring any blowups from the many economic and geopolitical landmines out there. So it's a 'tightrope walk' as we enter 2023, but with the Fed nearing the end of its tightening (the final rate rise from 4% to 5% coming in Q-1), logic says to be exposed to the stock market, bonds are also attractive and the metals are perking up.
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