An Early Valentines’s Day Gift from Markets
Around the World in 3 Seconds
U.S.: The S&P was up 2.2% on the week. YTD it’s up 6.9%
China: Shanghai was up 0.5% on the week. YTD it’s up 5.9%
Europe: The Euro Stoxx 50 was up 3.2% on the week. YTD it’s up 8.6%
Gold: GLD was down 0.8% on the week. YTD it’s up 10. 3%
To Summarize:
U.S. Stock markets are now up for the 5th week in a row. Why?
It looks like the economy is slowing getting better. But, oddly enough, corporations have been reporting fairly weak earnings.
Movers and Shakers of the Week
The Jobs report: (what is this?) was released Friday. 100,000 more people than expected got jobs. And we are now at 8.3% unemployment in the U.S. (lowest in 3 years). German unemployment fell to 6.7%.
In addition, PMI across multiple countries was announced, (what is this?). And it was stronger than expected as well.
And… people are saving more. U.S. Saving rate rose to 4% from 3.5%. This is a good sign for a nation that loves to spend.
Have We Decided to Collectively Ignore Europe?
This sounds a bit childish.
This summer—the market was fixated on Europe. Every, even insignificant, announcement caused either huge panic or incredible excitement—pushing volatility up high.
Today, that’s not the case. Announcements are no longer as impactful upon broader markets. This has been good for ‘riskier’ assets—stocks, lower quality (high yield) bonds and non U.S. dollar assets.
Also… people are currently quite under-invested in these ‘risky’ assets (as the economic mood has been very cautious). This means they may have further to run.
Fun Facts about the 1%:
It takes a $200,000 to be in the 1% in Clarkesville, TN, $380,000 nationally, and $900,000 in Stamford, CT. (The New York Times)
Our Valentines:
The Fold London, professionally chic work apparel, highlights B&BE
Stanford University, enough said, highlights B&BE
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