Asks about reaction to surprise payrolls drop and bond yield movement.
Sam
Cooper Howard
Payrolls report was weak with 92K drop, weak revisions, unemployment up to 4.4%. Hard to find silver lining despite weather/strike caveats.
Cooper Howard
After payrolls, 10-year Treasury yields plunged dramatically then reversed on Iran/oil news. Conflict doesn't look short-lived, could weigh on markets longer term.
Calls this a central banker's nightmare with inflationary pressures from Iran and ISM PMIs, plus jobs destruction. Asks how Schwab thinks about Fed's dual mandate and stagflation risk.
Sam
Cooper Howard
Schwab expects 1-2 Fed cuts at most. Iran is huge wild card for inflation. Oil above $91/barrel creates inflationary pressure. Labor market grew only 6K/month last year.
Cooper Howard
Doesn't believe we're in stagflation - economy continues chugging along, inflation not at 80s levels, though there could be some tick up.
Asks about demand for fixed income as shelter given energy shocks, tariff shock, indiscriminate selling in tech/software.
Sam
Cooper Howard
Still sees demand for fixed income - provides stable cash/income, principal protection, diversifier for equities. Suggests high credit quality for conservatives, municipal bonds for high tax brackets.