When the noisy-as-you-like-prone-to-epic-revisions non-farm-payrolls figure hit on May 3rd, it seems we crossed the streams. From a regime where Fed liquidity was expected to be large for long, discussions started to turn to good-is-bad and Fed 'Tapering' conversations began. Across every asset class, prices began to shift in the direction one would assume based on a less expansive monetization scheme by the Fed. But there is one market; a market incapable of believing reality; that remains in its own world of hope and unicorns. The US equity market has seen one of its best runs ever during this post-NFP period in the face of the rest of the world's pricing in a tapering.
US equities post-NFP amid growing Taper chatter...
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and every other major asset class that has QE-sensitivity... looks like it is pricing in the start of a Taper...
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Though who is right is anyone's guess (but it seems some bargains across asset classes if the growth story in stocks is to be believed)...
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Charts: Bloomberg