On Jun 5, 2013, at 5:31 AM, Victor Friedlander <victor at kfar-hanassi.org.il> wrote:
> National Financial Partners Corp. = NFP ->
> https://www.google.com/finance?cid=685557
>
> When financial transaction is entirely the trading in financial
> transactions, there is no necessary relation between the transactions and
> the rest of the economy; production, transport, consumption, etc, etc,...,
> etc.
Whereas utility valuations in the 1920s, conglomerates in the 1960s, dot.com's in the 1990s - all solidly tied to fundamentals.
I don't see how the financial markets are unusually removed from reality today. Bond markets are afraid the Fed may withdraw QE sooner than had been expected so they're selling off. That's not at all irrational. The reason Friday's payroll number is so important is that the labor market had been improving at a rate faster than the Fed's QE timetable assumed. May's employment report will be key to assessing whether that continues to be the case, or we're experiencing another of those summer slowdowns we've seen in recent years.
Doug