This is intended to be a forum for me to post chart ideas and hopefully receive feedback and stimulate discussion.It is not intended to constitute investment advice.
Tuesday, 20 March 2012
Get out of stocks....rising unit labour costs ?
http://www.bloomberg.com/video/88453082/ an interview with Aberdeen Asset management strategist..
Great piece. Everyone's blaming oil for the uptick in inflation, when it's so much more broad-based. A friend of mine who does a lot of business in China says it's one of the top issues over there, too, as razor thin margins are already being crushed by exchange rate and credit issues.
On a related note, I've been reading the TBAC minutes the past few months -- lots of talk about floating rate notes. Saw it in the MSM for the first time today, supposedly in response to lack of high grade ST and floating rate corp and financial debt for money market funds to invest in.
My suspicion is that Tsy knows that buyers will soon be turning up their noses at notes at these rates, and floaters are the only way they'll be able to keep the volume up.
Thanks PW. I thought it was a good vid and he seemed like a sensible guy as far as fund managers go ! I was quite surprised about the labour costs given the high unemploment.
Just a hunch, but I think most businesses would prefer a little wage inflation/overtime to adding headcount until comfortable that the uptick in the economy is more than a "corrective wave." Personally, I think the jury's still out. Thanks for continuing to find interesting things to post.
Great piece. Everyone's blaming oil for the uptick in inflation, when it's so much more broad-based. A friend of mine who does a lot of business in China says it's one of the top issues over there, too, as razor thin margins are already being crushed by exchange rate and credit issues.
ReplyDeleteOn a related note, I've been reading the TBAC minutes the past few months -- lots of talk about floating rate notes. Saw it in the MSM for the first time today, supposedly in response to lack of high grade ST and floating rate corp and financial debt for money market funds to invest in.
My suspicion is that Tsy knows that buyers will soon be turning up their noses at notes at these rates, and floaters are the only way they'll be able to keep the volume up.
Thanks PW. I thought it was a good vid and he seemed like a sensible guy as far as fund managers go ! I was quite surprised about the labour costs given the high unemploment.
ReplyDeleteJust a hunch, but I think most businesses would prefer a little wage inflation/overtime to adding headcount until comfortable that the uptick in the economy is more than a "corrective wave." Personally, I think the jury's still out. Thanks for continuing to find interesting things to post.
ReplyDelete