June 10, 2026
What You Need to Know Today:
Economy added stronger than expected 172,000 jobs in May
The economy added 172,000 jobs in May, more than economists had expected. The unemployment rate stayed at 4.3%. With revisions, March and April added 93,000 more jobs than previously reported. That puts average job growth in 2026 at about 114,000 per month, much stronger than the 10,000 average last year. That’s much faster than the rate at which people have been coming into the labor market because the Trump administration has squeezed net immigration to near zero.
The bond market says interest rates are going up
I think higher interest rates are more if a When? than an If? My advice is to cut the bond exposure in your portfolio–especially at the long end. Money market funds that emphasize very short-term Treasury paper are a good alternative–they are essentially cash substitutes. And I wouldn’t limit my selling to just U.S. issues. Tomorrow I’m selling my position in the iSHARES International Treasury Bond ETF (IGOV) out of my Jubak Picks Portfolio. The position is up 1.75%–plus interest payments–since I added it to the portfolio on May 12, 2025. The ETF is down 1.39% for 2026 to date as of June 8.
After just 9 months, Starbucks pulls its AI inventory system
Add another unknown to the list of things that makes valuing AI stocks–and figuring out he impact of these technologies on the economy and jobs–so difficult. Starbucks is saying goodbye to its artificial intelligence inventory management system about nine months after its debut, according to Reuters. The tool, which used computer vision to track some parts of the chain’s inventory, was announced in September as a method to simplify inventory record-keeping and prevent stockouts.
Starbucks has “moved to a single, consistent process across all inventory counts. This approach supports accuracy and product availability in our coffeehouses,” according to a company statement shared with Restaurant Dive. “We will continue to invest in technology and refine our tools over time.” Whatever that means. Reuters reported that Starbucks’ AI inventory tool occasionally miscounted or mislabeled items, but Starbucks did not comment on that report.
Buy the dip is alive and well–with a little help from its friends
The high-profile group of chipmakers such as Nvidia (NVDA) and Micron Technology (MU) that sold off on Friday’s stronger than expected jobs report led gains today, climbing 5.6% after the biggest selloff since 2020. Their rebound was enough for the S&P 500 to resume its advance, though most of the the stocks in the index fell. The S&P 500 gained 0.29% today. The NASDAQ 100 gained 1.58%. Declining issues outnumbered advancers by a 1.01-to-1 ratio on the New York Stock Exchange. There were 129 new highs and 162 new lows on the NYSE. On the Nasdaq, 2,746 stocks rose and 2,142 fell as advancing issues outnumbered decliners by a 1.28-to-1 ratio.The S&P 500 posted 13 new 52-week highs and 7 new lows while the Nasdaq Composite recorded 105 new highs and 164 new lows. What most interests me about today’s comments onthe bounce is how many talking heads on Wall Seeet called Friday’s selling a “reset,” or a “correction.”
Another one bites the dust: Goldman Sachs retracts call for a 2026 interest rate cut
Goldman Sachs economists no longer expect the Federal Reserve to cut interest rates this year due. The bank pushed back its forecast for the Fed’s final two rate cuts to June and December 2027 from previous expectations of December 2026 and March 2027. But Goldman still doesn’t beieve the next move for the Fd is an interest rate increase. Inflation appears “less likely to become self-sustaining,” Goldman chief U..S economist David Mericle said in a note dated Friday.
Apple’s developers’ conference starts tomorrow: AI news could move the stock
I think it’s an understatement to say that investors are looking for evidence that Apple (AAPL) will be able to catch up in AI.
This Monday will go a long way to giving investors an answer as the company introduces a revamped Siri at its Worldwide Developers Conference.
This market is just too damn expensive given the risks–Special Report 10 picks to stay (mostly) invested while cutting your risks
Could stocks move higher from here even though they’re more expensive than a year ago? Of course.
Could they gain another 29.8% in a year? It’s possible. But it strikes me as unlikely.
That sums up the current market puzzle very neatly, I think. Stocks are expensive and don’t seem to be pricing in potential very real risks. But stocks have returned almost 30% in the last year. And it’s very hard to walk away from the possibility of that kind of gain. Even if it is unlikely. What I’d suggest right now is a stock market strategy that takes into account both a solid appreciation of the excessive valuations in this market (along with a failure to price in risk), and the realities of investor psychology.
It is too difficult to go cold turkey on stocks right now and move 100% out of the market. On the other hand, you should be moving to reduce your exposure to the riskiest parts of the market–high multiple stocks–and raising your exposure to counter-cyclical or non-cyclical stocks. In this post, I’m going to give you 10 stock picks to use in executing that kind of strategy–a way to stay in the market and yet to reduce your risks.
Special Report: The Next Big Things and how to invest in them–Part 1 Quantum Computing; Part 2 Nuclear Fusion
A suggested quantum computing portfolio. If you want a piece of this Next Big Thing, but with less risk and less upside than a pure-play quantum stock, I’d suggest Alphabet/Google (GOOG). Among pure plays I’d include D‑Wave Quantum (QBTS), up about 235% year‑to‑date as of late 2025; Rigetti Computing (RGTI), up34% YTD by late December; and IonQ (IONQ), up around 25% year-to-date by late December.
Special Report: 3 Stock Market Bubbles: When will they burst? What to do now? Part 1, the AI bubble, Part 2, the debt market bubble, and Part 3, the cheap money bubble
This is a very difficult stock market. Even as stocks climb to new record highs. On the one hand, even investors who are all in, maybe even overweight to the long side, worry that this rally isn’t sustainable for much longer. By most historical standards valuations are off the charts. I get a steady stream of stories and posts asking whether XYZ stock has climbed to faro fast. Volatility on somedays can be downright scary with relatively minor events leading to big market moves. It’s simply very hard to stay on board this rally. On the other hand, it’s very hard to get off the train. I see lots of Wall Street analysts cutting recommendations from “buy” to “hold” on valuation fears, but I see almost no one saying “sell.” FOMO–fear of missing out–is just too strong. Which is totally understandable. The Standard & Poor’s 500 index was up 25.02% in 2024 and was up another 18.11% in 2025 to date through October 27. Market leaders have racked up even bigger gains. AI chip icon Nvidia (NVDA) was up 171% in 2024 and has gained another 39% in 2025 through October 27. It’s insanely difficult to walk away from those kinds of gains. So what’d you do?
Special Report: How to invest in our 3 energy crises–First 8 picks JCI, BEPC, LNG, SMNEY, GNRC, CCJ, EQNR and GVE
You don’t need the Department of Energy or the Energy Information Administration to tell you we have an energy crisis. (Good thing since they’re shut down with the rest of the Federal government today.) All you need to do is look at your electricity bill. This summer monthly home electric bills jumped in Trenton, New Jersey, for a typical home by $26. In Philadelphia, it increased about $17. And in Columbus, Ohio, it spiked $27. And your monthly bill doesn’t capture the full damage. In California,residential electric rates are up 62% in five years. In Maryland residential rates are up 54% in five years. Most frustratingly–and most importantly for investors–those bills don’t explain the nature of the crisis.
Or more accurately “crises.” Because we’re the middle of three, overlapping and interlocking energy crises. That are playing out on different timeframes that range from NOW to the next 5 to 10 years. It’s that last point that’s critically important for investors. Because to make money–and let’s be clear: like in all crises there’s money to be made investing in these three crises–you’ve got to understand the nature of each crisis and buy into it at the right time. Not so early that you sell in disappointment because your profits haven’t arrived yet. Not so late that all themes tasty profits are gone. This Special Report is about untangling the 3 energy crises, giving you a timeline for investing in each, and then calling out 10 picks you cause to profit from theses crises. Ya, ready?
Special Report: “10 better dividend stocks for a dangerous market”–Part 1 with 6 sells, Part 2 first buy COLD
You remember what The Rolling Stones sing? “You can’t always get what you want”?
In this historically expensive market with a slowing economy, with a falling dollar and a climbing government deficit, where no one knows what the Trump tariffs regime we lookalike in 60 days, and where stagflation where inflation rises even as the economy’s growth rate slows I know what I want: some safe dividend stocks to take some of the risk out of my portfolio, with tasty 8% dividend yields, with solid financials and low debt, and with relatively low exposure to any downturn in the economic cycle. Is that too much to ask? Well, apparently, Yes. Because I can’t find any stocks that fit the bill. Stocks paying anywhere near that yield, for example, come with more rick than I want to take on in this market and this economy. Especially because the last thing I want to do is add high-risk, go-for-broke dividend stocks to the “safe” side of my portfolio. But the Stones go on to advise “but if you try sometimes, you’ll find/You get what you need.” And that’s what this Special Report “10 better dividend stocks for a dangerous market” is all about.
Jim’s Stock Alerts
LLYEli Lilly and Company
COLDAmericold Realty Trust, Inc.
WMTWalmart Inc.
NVDANVIDIA Corporation
CMICummins Inc.
PAASPan American Silver Corp.
TBFProShares Short 20+ Year Treasury ETF
IGOViShares International Treasury Bond ETF
FXYInvesco CurrencyShares Japanese Yen Trust
UUPInvesco DB US Dollar Index Bullish Fund
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