what is amazing is that equity market bulls are looking for the next leg up to come via improvement in the U.S. labour market. The USA Today runs with an article (page 4B) concluding that “investors need to see a Labor Department report that says employers are creating more jobs than they’re cutting. Until then, investors are going to stay cautious.” This is a truly unbelievable comment considering the S&P 500 has surged 70% in the past year — 10 years of price appreciation lumped into one — even though 3.3 million jobs were lost. Since when has Mr. Market shown that it really has an eye on the labour market? It’s all about a chase for relative yield in a low rate environment — a highly speculative environment, which is why U.S. companies have managed to float a huge $12 billion of new bond supply in each of the past two days; the hunger for yield.