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What Happened Last Week and What It Means to You: Week Ending March 15, 2024

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And the crowd goes wild…CNBC, and the media continues to ignore reality.

What does it mean – From 30,000 feet it looks like our stupidity is only matched by our absurdity. Eleven out of the last thirteen job reports released by the Bureau of Labor Statistics (BLS) have been revised down.

While the markets cheered the 275,000 new reported by the BLS and beat the census of 200,000. They completely overlooked that the January nonfarm payrolls were revised down to 229,000 from 353,000. That is down to 124,000 in January and the December nonfarm payrolls revised to 290,000 from 333,000 down 43,000.

Taking a deeper look at the data, it is akin to drinking milk that is 6 weeks past its expiration date. In no way am I suggesting a conspiracy by the unelected self-serving crowd of DC bureaucrats, but something just does not add up. We have witnessed the last 11 out of 13 job reports revised down by an average of over 30,000 jobs. It must be the “new math”.

After reviewing the report in its entirety, it is easy to see that the job market is not nearly as strong as the top line payroll readings suggest. Without going too deep, all you have to look at are the monthly revisions. According to the latest report, payrolls in December and January were revised down by a total of 167,000, meaning February was just 108,000 above the original January level. Subtract a bloated government, it was even worse in the private sector, where payroll gains were a paltry 19,000 for the month after netting out revisions for prior months. Remember folks, the government does not create wealth and relies on you, the taxpayer, to pay the bills.

 

The unemployment rate climbed last month to 3.9%…Another reason the job reports do not make sense. Every month the initial report cheers new jobs, but unemployment rate is flat or goes up.

What does it mean – Without the government the unemployment or the U3 unemployment rate would be closer to the U6 unemployment rate of 7.3%. The private sector is shrinking, and the taxpayer is on the hook for more government jobs and a bloated unaccountable government.

 

Fewer small business plan to hire more or increase wages…According to the NFIB fewer small businesses intending to hire or increase wages, reinforcing the trend of a softening labor market.

What does it mean – small businesses fear this administration’s attack on capital creation, increased regulations and out of control growth of government at the state, federal and local levels.

 

Job Creators Network (JCN) releases monthly poll…With over 550,000 small business members, JCN has a unique insight to American entrepreneurs and small and midsize business owners. Here is what they are saying.

What does it mean – Small business is under attack by bad policy pushed by big government. Here are a few charts and concerns from the engine of the American economy that creates nearly 70% of all new jobs.

 

I have been harping on increased regulations, too big to fail, the unholy alliance between big government and big business for years. We are now seeing what it means when a government big enough to give it to you is also big enough to take it away. Thank God for our constitution and the protection of your Unalienable Rights of Life, Liberty, and the Pursuit of Happiness.

 

The ownership mentality that made America the freest and most creative country in the world created more wealth and freed more people from tyranny and “big Government schemes like socialism and communism is under attack by the very bureaucracy and elected officials who fear the voice of the American dream…You. Over 90 million people are affected daily by the onslaught of regulation, big government, destruction of the rule of law and now a member of the supreme court, Justice Ketanji Brown, now questions free speech. The First Amendment is number one for a reason.

 

Let them hear you roar!!!

 

Let’s roll America!!!

 

Doug De Groote, CFP®, MBA, CTC
Managing Director

De Groote Financial Group, LLC is a federally registered investment adviser that maintains a principal office in the State of California. The information contained in this message is confidential, protected from disclosure and may be legally privileged. If the reader of this message is not the intended recipient or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any disclosure, distribution, copying, or any action taken or action omitted in reliance on it, is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by replying to this message and destroy the material in its entirety, whether in electronic or hard copy format.

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Jeannie Ewing-Nicholson

Operations Manager

Jeannie started her career in the Financial Services industry in 1994 with Oppenheimer & Company. As part of the De Groote Financial Group, Jeannie is responsible for the operational needs of the firm including cash management and account administration. With her upbeat attitude and attention to detail, Jeannie provides an efficient streamlines experience to ensure clients meet their goals. Jeannie enjoys travel, outdoor activities, Pilates, and is a football and basketball fan. She resides in Westlake Village with her husband, daughter and son.

Mary-Ellen Lykken

Executive Assistant

Mary-Ellen, Executive Assistant at DFG, keeps the office running smoothly by providing administrative support and assisting with scheduling and organization. With a background in human resource and office management, Mary-Ellen comes from the non-profit and services industries.

Outside of the office, Mary-Ellen is committed to the advancement of independence and productivity for those with disabilities. By telling her story of the challenges and joys of raising a child with complicated disabilities, she hopes to help others navigate similar circumstances.

She is happiest when visiting her two grown sons. Otherwise, you can find her competing on the pickleball courts.

Sara Mariniello

Operations Manager

Sara is new to the financial industry only starting in 2022 when she was hired at De Groote Financial. As Operations Manager, Sara is responsible for all the paperwork surrounding opening accounts and investment paperwork and is also responsible for much of the client communication. Sara has her bachelor’s in science and nursing from Concordia University, Texas and worked as nurse for over a year prior to moving back to California. She loves all things sports and church related and is likely spending every free moment with her Husband visiting family in Texas and New Jersey.

Fadi Ahmed

Chief Operations Officer and Chief Compliance Officer

Fadi works with clients to ensure an exceptional experience. He coordinates and assures the planning process and wealth management tools are at your fingertips to provide the clarity you deserve and the transparency and access to all your accounts. Fadi ensures the data and information is reflective in our planning software. All changes and updates flow through his desk and he coordinates those changes with the rest of our team.

Andrew Krout

Wealth Advisor, Co-Chief Investment Officer

Andrew Krout is a Wealth Advisor at De Groote Financial Group, LLC. He also serves as a Co-Chief Investment Officer for the firm, focused on wealth management.

Previously, Andrew served as CIO with Kelly Financial in Boston Massachusetts since 2013. He is a licensed investment advisor representative and insurance producer. He graduated from Saint Francis University with a bachelor’s degree in both finance and accounting. He is a candidate for CERTIFIED FINANCIAL PLANNER™ designation. Andrew holds life insurance licenses in Massachusetts, New Hampshire and Connecticut.

Andrew is passionate about serving his clients and investment management and how to apply news and current events to investment decisions. He played Division 1 golf in college, and still enjoys playing and watching the sport in his free time.

David Darst

Co-Chief Information Officer

David Martin Darst, CFA is an Investment Advisor to DeGroote Financial Group, specializing in asset allocation and product selection. Previously, David served for 17 years as a Managing Director and Chief Investment Strategist at Morgan Stanley Wealth Management, with the responsibility for Asset Allocation and Investment Strategy. He joined Morgan Stanley in 1996 from Goldman Sachs, where he held Senior Management Posts within the Equities Division and earlier, for six years as Resident Manager of their Private Bank in Zurich.

David is the author of 13 books, including bestsellers The Art of Asset Allocation, 2nd Edition (McGraw-Hill), and The Little Book that Still Saves Your Assets (John Wiley & Sons). He also appears as a frequent guest on CNBC, Bloomberg, FOX, PBS, and others, and has contributed articles across a variety of publications.

David graduated with a BA in Economics from Yale University, and earned his MBA from Harvard Business School. He has lectured extensively at Wharton, Columbia, INSEAD, and New York University Business Schools, and for nine years, David served as a visiting member at Yale College, Yale School of Management, and Harvard Business School. He is a CFA Charterholder and a member of the New York Society of Security Analysts and the CFA Institute. 

Doug De Groote

Managing Director

Doug is a Certified Financial Planner™ (CFP®) with an MBA in Financial Planning, and is an active member of the Financial Planning Association (FPA). Before establishing De Groote Financial Group, Doug founded the United Wealth Management division of United Capital. Prior to that, Doug was a partner at Crowell, Weedon and Co. He regularly contributes to a variety of financial and general media.

Doug’s passion, and what he believes, is that everyone deserves the opportunity; they deserve to have the freedom and responsibility to be pro-active in achieving independence and financial success.

Doug’s life is focused around his family, wife and three children, and making sure they get the foundation that is necessary for them to have the awareness of the opportunities that abound in our great country.

Doug helps increase his client’s awareness and success, to identify and take advantage of opportunities that present themselves and help protect them from some of the pitfalls or obstacles that are thrown in our paths. With regards to their financial circumstances, Doug helps his clients identify their goals, plan for various outcomes and manage their assets to help them make their vision a reality.