It’s earnings season and the investing world gets weirder by the day. In this bizzaro world largest companies in the world have their stock gap up 8% (Amazon) or gaps down 8% (Facebook) after earnings release. A move of this type was the domain of microcaps, not a $900B/$600B company. Regardless, the expensive market keeps getting more expensive and the pocket of opportunities keeps shrinking — atleast in the US market.
On the central bank front, the bond market is all but pricing in two rate cuts by the Fed. Liquidity still continues to flood the market which is evident as the money sloshes around in the system.Continue reading