from KingWorldNews:
The stock market was recently at a high and yet there was no strong
volume on the buy side. You had late-comers who were weak-handed
holders of stock. And because there is no volume, any kind of news can
set off a decline. We saw a strong GDP print, which will assuredly be
revised down, but then we had the unemployment numbers come out worse
than expected. Professionals on the Street such as myself were very
concerned about the Employment Cost Index. That number came in at .7
percent.
The Fed may pretend not to care about commodity inflation because they say commodities go up and down, but if you look at the long term, they don’t. Commodities go up. Regardless, the Fed does look at wages as an important indicator of inflation, and they will not like that Employment Cost Index number.
Victor Sperandeo continues @ KingWorldNews.com
The stock market was recently at a high and yet there was no strong
volume on the buy side. You had late-comers who were weak-handed
holders of stock. And because there is no volume, any kind of news can
set off a decline. We saw a strong GDP print, which will assuredly be
revised down, but then we had the unemployment numbers come out worse
than expected. Professionals on the Street such as myself were very
concerned about the Employment Cost Index. That number came in at .7
percent.The Fed may pretend not to care about commodity inflation because they say commodities go up and down, but if you look at the long term, they don’t. Commodities go up. Regardless, the Fed does look at wages as an important indicator of inflation, and they will not like that Employment Cost Index number.
Victor Sperandeo continues @ KingWorldNews.com
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