Don’t you, forget about me
Market Update: 31 July 2020
Apple, Amazon, Alphabet all beat expectations – enough to get Nasdaq excited with a 0.4% rally after being down and reversed S&P falls – it negated the predicted dovish FOMC, an awful USD GDP – but somehow better than expectations and an increase in US jobless claims.
The standing question that frequently arises is of the disparity between Wall Street and Main Street – but is there an emerging question of the disparity from Silicon Valley and Main Valley (Street).
We are very used to Silicon Valley being a small hub with concepts that have matured into well-known brands – they have, with the advent of internet, working from home and apps aplenty created behemoths that now steal the conversation from the big banks – even car makers, with Tesla considered more tech DNA running market cap circles around its competitors (and higher torque). So perhaps we need to reconsider if besides the massive benefits in productivity, they are now superseding the prospects of jobs and therefore consumption.
Will this be the start of lower GDP and we all become lap-dogs via the advent of Universal Basic Income? Maybe not just now, but we need to refocus to how much benefit these tech earnings bring to an economy over the much loved catch-cry of Trump: “Jobs, Jobs, Jobs” (I don’t think he was talking about Steve).
So risk is back on into a month end – except ASX, where I’m sure we’ll see it catch up and USD again suffers as dip-buying prevails. We’ll see what happens Tuesday (after Bank Holiday). Have a great weekend!
Don’t you… – https://www.youtube.com/watch?v=CdqoNKCCt7A
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