"A weak jobs report sent stock futures soaring this morning, as it became clear the Fed won't be tapering any time soon."
Call me nostalgic, but I remember a time when a bad jobs outlook sent the large-cap companies down, not up. The economy is weak, so a company's profit expectations suffer. The logic makes sense.
Today, however, we live in the topsy-turvy world of government-manipulated markets, where such asinine statements make complete sense… until they don't. The problem with a market that lives at the teat of Washington's policies is that it can be reversed in mere moments. One election. One popular news story. One social media outcry. One back-channel policy. One bloody coup d'état. That's all it takes.
I'm not just talking about quantitative easing and similar marketwide meddling. Even an individual company can be caught in the crosshairs of the ever-increasing political in- and out-fighting.No Democracy, No Software
Take the continually escalating best-frenemies slap fight with China… in the last few months its government has closed the doors to American technology companies in a big way. Just look at the recent revenue shortfall for data-warehousing giant Teradata, whose Asian revenues fell 21% last quarter, sending shares tumbling, in the wake of an unofficial "Buy Chinese" campaign led by its politburo.
This same policy is likely to have big follow-on effects for many other large consulting and ...