Good morning. Cited by Yahoo Finance as “the last major piece of data before the Fed’s decision,” an inflation print this morning will make the Fed’s pronouncement all the more difficult … as inflation picked up in the month just finished … and remains well above the Fed’s stated target. Taking this into strong consideration, it is being reported that consensus (whoever that is) calls for a 25-basis point (0.25%) drop at next week’s meeting … though we will certainly hear the White House screaming (quite loudly, no doubt) for a much deeper cut. Most of the governors will probably express that inflation remains a top concern … even as the employment situation worsens. But why was there an inflation boost to begin with? Many feel companies are starting to pass extra fees on to consumers (a result of the tariffs) as absorption can go on for only so long before it really starts to affect the bottom line. And eventually … ugh …these added costs will end up on store shelves (just in time for Christmas perhaps). Yet markets are still hitting new records, leaving many of the nearly 32% of Americans that don’t own stocks (according to Gallup) to probably looking on with jealous abandonment … even as some market mavens are calling for the balloon to soon deflate. One analyst I spoke with … whose name I will change to shield his identity … hit me with an important comment. John … I mean Bill … said he doesn’t see how it makes sense for companies to absorb some of the extra costs … and consumers to pay more for goods … and still have markets hit new records on what seems to be a daily basis. He feels this, logically, can’t continue the way it has been. Still, we will enjoy surfing on the wave for as long as we can …. … as we nervously remain hopeful that something unexpected doesn’t suddenly knock us off the board. Have a great day, Joseph G. Witthohn, CFA Have any questions? Please contact info@teamemerald.com
|
Call Us: +1 (800) 722-4123 
Back