Is Inflation A Threat?
While the Federal Reserve likes to talk about the rising threat of inflation, global central bankers are more concerned about low inflation or deflation.
The Real Concern Is Asset Bubbles
Inflation can rise quickly if wages begin to gain traction, but the Fed’s real concern is about letting the stock market get too far ahead of the central bank’s zero-rate policy. Alan Greenspan helped usher in two booms and busts (dot-com and housing). Will Janet Yellen put bubble management at the top of her to do list? Only time will tell.
Key Levels For Fed Reaction
This week’s stock market video covers key market levels for equity risk, along with some surprising pockets of relative sector strength.
After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.
Investment Implications – The Weight Of The Evidence
Prior to Wednesday’s Fed announcement, the bulls still had an edge over the bears, but weak momentum tells us to remain open to all outcomes after the FOMC statement is released.
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