⚠️ 600k JOBS GONE OVERNIGHT_ The U.S. is NOT Ready for THIS!

What if the booming stock market is just a glittering facade hiding a real economy that's cracking right at its core? Because right now, a catastrophic trucking purge is set to race 600,000 drivers overnight. Now this isn't mere gloom, it's a freight train of doom because when transportation derails, the entire economy and the stock market come crashing down right alongside it. Plus, tonight's show is brought to you by Outside the Box Capital and their spotlight Onclyx Biotech. You can find them on the Nasdaq at the symbol ONCY. And they are trailblazers unleashing revolutionary cancer therapies that empower your immune system to conquer the toughest tumors head-on. Stay tuned to their show or check out the pinned comment or description for more information. Because right now, we're facing the largest trucking capacity purge in history and it's going to drag the entire economy down right alongside it. I've been sounding the alarm for months about the slowdown in demand, the drop in imports, and the ripple effects this will have on the labor markets. And my friends, it's not just talk anymore. It's here and it's poised to deliver a massive blow to the entire economy. Because with the risk of the market eliminating 600,000 active drivers, this would be the largest capacity purge in history. It's going to bring COVID-like spot rates along with it. Now, to put this in perspective, that's a staggering 17% of the workforce. But here's the real kicker. This isn't isolated trucking drama. It's a symptom of deeper cracks in the foundation of the economy. Because right now, carriers are bleeding cash. And they're being forced into layoffs or straight-up bankruptcies as low volumes and cut-throat competition squeeze out the small players. And this situation is particularly dire for brokers with spot market exposure as the scarcity of freight leaves little room for profitability. And this has created a system where many participants are under water and is not sustainable. So you take a look at imports and what's happening? They're contracting even further. And this freight famine shows no signs of easing. On top of that, what it's doing is paving the way for persistent unemployment in transportation and waves of insolvency among mom-and-pop carriers. Now, here's the proof. Let's turn to this chart of the cash freight index. That's shown in blue against average weekly hours, And I want you to see the strong relationship between freight and the real economy. Because as you see, the freight index goes down. What happens? Average weekly hours decline right alongside it. And it doesn't happen with much of a lag. And commonly, when you see big declines in both, well, it tells us we're headed right into a recession. Let's fast forward to 2022. We've been on a long, steady decline in freight, now threatening to contract as imports drop. So what we're facing here is when shipments nosedive, labor hours and jobs go right alongside it. Let's turn to this chart of imports and goods and services, now overlaid against the cash freight index, still shown in blue. And again, you can see the very tight relationship. And the risk we're facing right now is that imports are set to contract. And there's no sign of that changing anytime soon. Of course, the risk here is freight volumes are set to keep tanking here. And this is going to amplify the pain for drivers, small providers, and even worse, the broad economy. So what's unfolding in freight right now is the canary in the coal mine of a weakening economy. And this is echoing into manufacturing's eight-month contraction slump and consumer sentiment hitting rock bottom on job and price fears. And if you think the stock market's immune, remember where transportation leads, stock prices follow. Now let's dive deeper into this economic storm because this trucking purge isn't just a standalone crisis. It's an explosive symptom of a manufacturing meltdown and the labor market is on the brink. And this has all been fueled by crumbling demand and tightening financial conditions. U.S. factory activity shrank in October for an eighth straight month. This is driven by a pullback in production. And here's the kicker, tepid demand. The Institute for Supply Management's manufacturing index eased to 0.4 down now, 48.7. And what we're facing is that inventories are piling up all across the supply chain and going unsold. New orders are crashing. And exports, they're getting hammered by tariff uncertainties. And this is echoing exactly what the freight decline has been screaming for months. That less demand means less stuff to ship. It's starving trucking volumes. And then it's taking that oversupply that's now leading to a massive, brutal purge. The group's production index went 2.8 points to 48.2, marking the second month in the last three that output has contracted. The weakness is keeping headcounts depressed. The I-7 employment gauge shrank to the ninth straight month. And here's what I want you to be thinking. As factories throw back production and capacity, the need for workers evaporates right alongside it. And then all of a sudden, those 600,000 trucking jobs, well, it's just the tip of the iceberg. And here's a proof. And let's take a look at this chart of capacity utilization in blue against the unemployment rate in red. And you can see very clearly as capacity utilization declines, the need for workers goes right alongside it. And this is exactly what the transportation industry is screaming right now. That capacity utilization is about to come crumbling down and take the labor market right alongside this. And it's historical proof that decline in output leads straight to pink slips. And this ties directly to the end of the low hire, low fire era. And that's kept the labor market artificially afloat. Because for years, companies have hoarded workers through slowdowns, but that's changing. Because we just saw Target eliminate 1,800 roles. Amazon, 14,000 jobs gone. Paramount, 1,000. Molson Coors saying people don't want to even drink beer. They fired 400 people. Now the Dallas Fed calls this simple rebalancing, but I've been warning it's a prelude to bigger pain. So why is this so bad? Because falling demand isn't benign disinflation. That's what the Fed wants you to believe. It's a demand destruction trap where prices drop because nobody's buying. And not because costs are easing sustainably, because consumers have been warning that the economy is not working for them. And the evidence is clear as sentiment remains subdued at a five-month low of 55, battered by job and price fears that could slash holiday spending. And think about this. Recent forecasts paint a grim picture. Deloitte predicts a 10% drop. PricewaterhouseCoopers says a 5% decline. But if you look at all these accelerating layoffs, I think it's going to be much worse. And if shoppers pull back, factory production grinds slower, transportation demand craters even further, and the labor market weakens even more. And what this does is create a vicious cycle that could add over 100,000 job losses in retail and logistics on top of the 600 that are already going in trucking. And here's the proof. Let's take a look at now the capacity utilization still shown in blue against advanced retail sales in red. It's very clear as retail sales go down, the demand at the factory level declines. And that means, of course, the labor market goes. And the risk we're facing right now is all the front running of the tariffs is about to roll over as consumers cut their spending. It's going to take capacity utilization down. And with it, we're going to see the factory sector lay off even more right alongside the transportation sector. And the problem we're facing on top of that is the riskiest consumer borrowers. Well, there's even more of them. As subprime personal loans have now hit 14.4%. This is high since 2019. As folks rack up debt amidst stagnant wages and this debt surge is threatening even more defaults as liquidity drains out of the financial system. So you can see how this is all connected. Because as liquidity drains, there's an insufficient amount of new money being created. And what we're facing is it's choking a cash-starved system. And here is indeed the proof. Because ISM respondents are being very blunt. In general, business is really restrained. Money is sitting tighter. Now, on Saturday, we covered the fact that liquidity cracks in global money markets were getting wider. And now you're seeing the knock-on effects. It's hitting the transportation sector head-on. Because carriers can't borrow to survive this freight famine. There just isn't enough demand there. And what this is going to do is force more bankruptcies. Now, if liquidity doesn't flood back into the system, say via rate cuts, policy shift, or anything for that matter, the 600,000 job purchase is just the opening act, potentially snowballing to millions lost across manufacturing, retail, and services. Now, this trucking purge, supercharged by manufacturing's eight-month dive and labor's fraying edges, could possibly ignite a super-cycle reset. This would lead to slashing capacity that would halt the freight recession. The problem is it would lead to hiking rates for big carriers. And my friends, that means it's going to be stickier inflation on prices across the board. And that would offset any disinflation that we see coming in the pipeline. But here's the real twist. Absent a liquidity surge, this could shove us into a deeper slump. It wouldn't be a problem with inflation because it would come crashing down. Now, don't sit idle because if you act now, you can thrive in the coming crisis. Diverse away from sickle holes like manufacturing and transports. Stockpile an emergency fund for six to nine months of bills. Pivot to resilient havens like tech or healthcare. Perhaps even consider scooping up dollars, treasuries, and buying gold on the dip. And if you do this, you'll not just weather the storm, you'll emerge wealthier than ever. And speaking of emerging wealthier, we thank the stock first sponsor today's show, Onclyx Biotech. If you find the Nasdaq on the symbol ONCY is poised for a huge move higher because they're developing Pellaria Rep, an innovative cancer therapy delivered by IB. This treatment helps the immune system target cancer cells, showing promise in pancreatic and gastrointestinal cancers. It's earned FDA fast-track designations for pancreatic and breast cancer. Onclyx is pushing to bring this therapy to patients through smart clinical plans. Now, Pellaria Rep is a first-of-its-kind therapy that makes cancer cells visible to the immune system. It multiplies inside tumors, causing them to burst while spreading healthy cells. It turns cold tumors into hot ones, triggering immediate and long-lasting immune attacks. This dual action positions Pellaria Rep as a powerful partner for other cancer treatments. Now, cancer affects millions with over 1.9 million new US cases yearly per the American Cancer Society. Pancreatic and gastrointestinal cancers are especially deadly with few effective treatments. Pellaria Rep targets these tough cancers, addressing urgent needs. It's brought potential taps into the growing cancer therapy market. Now, Pellaria Rep is advancing rapidly in pancreatic cancer through the Goblet Studies Cohort 5, a first-line metastatic trial that's building on the Cohort 1's impressive 62% response rate. For anal cancer, the updated Goblet data shows 30% response rate with Pellaria Rep, and 20 patients, the median response lasts 15.5 months with two complete responses over a year, including one beyond two years. And like Ambryx, Oncolytics is an overnight success 20 years in the making, proving signs it's now gaining attention in immunotherapy. Ambryx started near a 50 million market cap before Johnson & Johnson bought it for over $2 billion. And Oncolytics sits at a similar spot. Strong safety, solid efficacy, and platform potential targeting the RAS pathway, one of oncology's hottest areas. While RebMed at an 8 billion valuation and CG Oncology at a 3 billion valuation chase single targets, Pellaria Rep has broad potential across the 16 billion GI tumor market, pairing with multiple therapies to reshape cancer treatment. Oncolytics Biotech is a leader in cancer innovation. Pellaria Rep's ability to destroy tumors and boost immunity is unique. And with FDA fast-track designations and promising clinical plans, Oncolytics is poised to make a big impact. This company is creating exciting possibilities for patients, biotechs, and investors alike. Keep an eye on the Nasdaq and symbol ONCY. And as always, with any company we feature on the show, you are under no obligation to purchase our stock. Be sure to do your research before placing any trades and use your risk control levels when you do. And with that, I'm Steve Van Meter. Thanks for watching and being fans. Bye now!