Portfolio Manager Adam Johnson on July Jobs Report, Tariffs, and National Debt

July Jobs Report and Economic Outlook

• 📉 The July jobs report showed only 73,000 jobs added, falling short of the expected 110,000.
• ⚠️ Significant downward revisions were made to May and June job growth, totaling 258,000 fewer jobs than previously reported.
• 📊 Despite the weak July numbers, Adam Johnson views the economy and corporate America positively, calling the job growth figure a "rounding error" in the big picture.

Tariffs and Trade Agreements

• 🌍 New global tariffs were implemented, with baseline tariffs ranging from 10% to 40%.
• ⚖️ Johnson believes most tariff agreements, particularly those at 10-15%, are manageable and effectively "level the playing field" for US exporters who already faced similar tariffs abroad.
• 🤝 Agreements with major trading partners like the EU, Japan, and South Korea at 15% are seen as progress that doesn't create excessive pain.

American Ingenuity and Growth Investing

• 🌱 Johnson, a growth investor, is excited about the current economic climate where "American ingenuity is finally being celebrated again in Washington."
• 🚀 He feels that corporations looking to grow and merge, and exporters, are no longer being penalized.

National Debt and Donations

• 💰 The US Treasury is now accepting payments via Venmo and PayPal to help pay down the national debt.
• 💸 Since 1996, individuals have gifted nearly $68 million to the government for debt reduction.
• 🚫 Johnson advises against paying down one form of debt with another, but acknowledges and blesses the efforts of those donating.