Good afternoon
not that much to report today....very quiet on the microside.
The US labor market is booming...while this time, labor costs were well behaved. As I am going to finish this report, equitíes are jumping on these numbers...the participation rate - that´s the percentage of people wanting to have a job - has increased by 0,3%, which is very strong. Looks like the strong economy is luring some people back to work...
Bonds slightly weaker, not much action in equities today, and the same for the metals ( well, this was the case in early afternoon, before the labor figures got announced ). Nickel a little stronger, backed by the strongest increase in canceleld warrants in 5 years, indicating further withdrawals from LME-stocks.
I am getting a little bit worried about the huge performance of US tech stocks...from Amazon to Salesforce, Red Hat, Intuit, Splunk, Netflix etc etc...strong as a bull. The PE-expansion there cannot go on forever...for the value of Amazon, you can probably buy the entire resource sector ex oil ( I calculated only the value of BHP, RIO, GLEN, Vale ,AAL, FCX , which together are half of AMZN, and after that, stocks are getting a lot smaller ). Something must clearly be wrong here???
I am very happy, that my fund, Nestor Australien, has survived this years upheavel without much trouble - it´s down about 2% in Euro, and up a fraction in A$. Considered, that small caps used to be the first victim in times of uncertainty, they have been holding up very well indeed.
I hope, that Nero´s ego has been satisfied now with the imposition of steel tariffs - he can now play peace-angle by talking to Kim! They might actually get on quiet well.....
Have a nice weekend without thinking too much about all the craze around us!
WS