Only have time for a quick and dirty update, so here goes.
It may not be the most accurate of headlines, but there were a couple of interesting numbers out today, especially when it comes to the hawks and doves inflation battle, so I thought it would be fun to take a break from all of the doomsday articles about the stock market.
Still No Inflationary Pressure
It seems that inflation is falling (not rising), countering the theory that such a drop in inflation earlier this year was only temporary.
Oh, and jobless claims are up.
In other words, the inflationary pressures are still not there.
All of this adds up to a Federal Reserve that might just be figuring out that there is no need to raise interest rates any more this year. (And the previous increase was probably unnecessary as well.)
This goes double if geopolitical trouble (Trump v North Korea) spooks business and investors.
It may turn out that this global instability is just the pinprick the stock market needs to head back down for a correction. If so, remember that it wasn’t any stock chart, or Shiller PE ratio, or super-duper analyst investigation that said it was time for markets to go down. It was, as is so often the case, completely unpredictable news events that shook investor confidence enough to trigger a selloff.