Fed day: Who cares?

Fed just released its long-awaited decision – no change. Wow!

The real news came out of China where we see 2 major developments. First, there’s a slowing of growth in imports. Guess what that did to commodity and commodity related stocks – yup, they’re all down. Of course, they were only up because some in the investor community believed that China would rise forever. Silly rabbit. The second piece of data is that real estate prices are rising at a slower rate. Now, with something on the order of millions of apartments supposedly sitting empty, I’m surprised they went up at all. What will happen when they actually start to decline? Well, look for more fake numbers from the government, social unrest from the people, and more pressure on resource related stocks that will have to start pricing in a deceleration in Chinese growth.

Lastly, productivity and labor costs (from BLS):

Productivity decreased 0.9 percent in the nonfarm business sector during the second quarter of 2010 as unit labor costs rose 0.2 percent (seasonally adjusted annual rates). In the manufacturing sector, productivity grew 4.5 percent while unit labor costs fell 6.1 percent.

Last 5 posts by Yaron Sadan

• Calling all themes - February 10th, 2012
• Portugal, and Yields, and Iran . . . - January 30th, 2012
• The Hunt for Yield - January 26th, 2012
• All eyes should be on Iran - January 23rd, 2012
• Quick note - January 19th, 2012

No Comments

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment

You must be logged in to post a comment.