Stock markets tracking US techs and smaller businesses are surging, it is like the good times are back, it is not quite so good for the traditional US companies. Why?

When Nat King Cole sang about love, he said “it is over before it has begun.” Well, much the same can be said about reflation – that’s the hope that President Trump’s planned tax cuts would stimulate the US economy, leading to higher inflation.

Well, as was told here the other day, that does not seem to be happening.

But look at US techs and smaller companies, the news seems to be much better.

The US economy is a curious mix at the moment. The US Consumer Confidence index just keeps giving. It hit a 16-year high last month, and in April it fell a tad, but not by much, if it wasn’t for March’s spike, right now we would be saying the index is at a 16-year high – instead we have to settle for the second highest reading in 16 years.

Meanwhile, the latest flash purchasing managers’ indexes, covering April, fell to a seven-month low.

But the technology dominated NASDAQ Composite has now passed 6,000, for the first time ever.

The charge was led by the big techs: the so-called FANGs – Facebook, Amazon, Netflix and Google.

So far this year, shares in Facebook are up 27 per cent, shares in Amazon are up 12 per cent, Netflix is up 23 per cent and Google/Alphabet is up 12 per cent.

But then the Russell 2000, which tracks smaller capitalization stocks, has also risen to an all-time high.

Part of the explanation is that investors, fearing that reflation is not going to occur, have turned away from traditional companies.

But it also seems that techs and smaller companies are jut bucking the trend seen with larger firms.