We also got on the subject of investing in utilities on the show. I'll pass on those common stocks but as Levi Strauss built an empire selling jeans to the gold miners in California, I'll buy GE since they are the largest "power supplier" in the world. I own GE so be forewarned, but the company makes everything from nuclear power systems to gas turbines to wind thingies. Plus it has a 4% dividend which is almost what you get in a 10 year Treasury.
I don't believe the unemployment rate signals the bad things headlines would have us believe. I believe the jump from 5% to 5.5% partially corrects the inexplicable decline recently from 5.3% to 5%. The 5.5% is often the rate you see during times of economic expansion and the 30 year average is 6.1%. The bulk of the newly unemployed are in the 16-24 year age bracket and I believe the recent increase in the minimum wage created the problem. That, and a surge in energy prices, squeezed the small business owner that is the natural employer of this age group.
I'll be on Kudlow tonight to hopefully chat some more about this and other things.
Click here to see Farrell's comments on oil.
Vincent Farrell, Jr. is a Principal of Scotsman Capital Management, a member of the Kudlow Caucus, and a regular contributor CNBC.