Thoughts {05.08.19}

I had to be out of the office unexpectedly early this week so I'll post a few things I've noticed since last week.  I'll be back here tomorrow but then no posting till early next week, most likely Wednesday.

You know I've thought we'd see a return of volatility at some point this spring.  The current impasse with China on trade and tensions with Iran are the perfect basis for markets to take a bit of a breather. We've been very over bought by my work and if nothing else this could take some of the speculative edge out of stocks.  

That being said, it does look on the surface like the Chinese are the ones who may have backtracked on whatever deal has been in the works.  My guess is a deal gets done no matter what we're hearing right now.  To me this seems more like the haggling one might find in a Moroccan bizarre than a genuine breakdown in negotiations.  This seems even more the case with the Chinese Vice-Premier still coming to the US tomorrow.  

Regarding China, go read in yesterday's New York Times,  "Xi Jinping Wanted Global Dominance.  He Overshot."

Finally in the "Things are Getting Better" department I saw this report out of Reuters yesterday that U.S.  job openings surged in March.  According to the report there are now over 7.5 million job openings in America.  Again, not a sign that a recession is imminent.

Back tomorrow.