The problem with financial predictions is the fact that they can’t always be right. At zenruption, we believe that proper understanding of the world involves “owning it” when we are off on a call. The bast chance at being right the next time is in admitting to being wrong this time.
The Jobs Report today came in at a creation of 215,000 jobs in February and an uptick to 5% unemployment as more job seekers re-entered the market. We had called for 200,000 and maintenance of a 4.9% unemployment rate. The most shocking thing to us was our call for only .2% wage growth was wrong and .3% wage growth indicates resilience in the U.S. labor market. The potential for a Federal Reserve rate increase just ticked a bit higher.
We were, however, correct in that manufacturing jobs continue to fall at a very high pace. This is one place we truly wish we had been wrong. With another 29,000 high paying manufacturing jobs lost in February, this indicates a bad trend for the U.S.
Our Tesla call was right. The Model 3 is a spectacular car that shows that Tesla never ceases to amaze. The style, range, interior and acceleration of the vehicle isn’t just a threat to Chevrolet’s all electric car, the Bolt, but to Audi, Mercedes, BMW, etc. A car of such panache and quality for $35,000 is amazing. This is Tesla and Elon Musk rarely disappoints.
Our March 15th call for a 30% gain in Tesla stock was made at the price of $215. Currently, it is trading at $236.84. We have covered 10% of our call and feel that the 135,000 reservations for the Model 3 might be the indicator that gets us the rest of the way there.
Finance is the art of getting as close as you can, based on the information available at the time. The current numbers seem to correct our opinions just a bit and will be covered by us as time goes on.
In the meantime, go zenrupt your weekend.
Lina Martinez is a staff contributor to the zenruption money and life sections. For us, she embodies the ability to “own it” and correct as necessary. The zenruption opinion is that “owning it”, makes great leaders and thinkers. We think Lina is great and will be buying her a beer tonight.
Feature photo courtesy of Flickr, under Creative Commons Attribution-Noncommercial license