@theMarket: Markets Sink as Inflation Stays Sticky, Geopolitical Risk HeightensBy Bill Schmick,
03:11PM / Friday, April 19, 2024 | |
Geopolitical risk, inflation, higher for longer, rising bond yields, take your pick. There are several reasons for the stock market sell-off. The bad news for investors is that after a counter-trend bounce, the selling should continue.
There are at least half a dozen reasons why the markets were down again this week. If you have been following my columns, you know that I have been expecting this decline for weeks. The truth is that this pullback is long overdue. I believe it is a healthy, if painful, development that could last a few weeks.
I am not discounting the reasons for this decline. The attack on Israel last weekend was gut-wrenching. My next-door 0 Comments
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The Retired Investor: The Appliance ScamBy Bill Schmick,
05:44PM / Thursday, April 18, 2024 | |
If you haven't noticed, the price of large appliances continues to climb. What's worse, in a year or two, many find that the costly smart refrigerator, oven, or washing machine in your kitchen is suddenly plagued with all kinds of problems. What happened to the concept of quality?
In the last two years, my wife and I have had to purchase a new refrigerator and washer. The guy who delivered them warned me that it was just a matter of time before the dryer went as well. None of these items were more than 10 years old. I credit Rachel Wolfe of The Wall Street Journal for explaining why.
There seem to be three factors behind the shorter life span of 0 Comments
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@theMarket: Sticky Inflation Propels Yields Higher, Stocks LowerBy Bill Schmick,
03:11PM / Friday, April 12, 2024 | |
"One's a dot, two's a line, three's a trend," is how the saying goes. When applied to the inflation data this week, it spelled bad news for the financial markets.
Over the last two months, inflation showed increases in both the Consumer Price Index (CPI) as well as the Producer Price Index (PPI). This week, the March CPI data came in warmer than investors had hoped (0.4 percent versus expectations of 0.3 percent). The PPI was slightly below forecasts, but the monthly core index matched expectations. Not good.
Economists might say the jury is still out on calling a backup in the inflation rate, but traders shoot first and ask questions 0 Comments
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The Retired Investor: Immigration Battle Facts and FictionBy Bill Schmick,
04:30PM / Thursday, April 11, 2024 | |
Recently, several studies, combined with macroeconomic data in both the private and public sectors, have revealed that immigration has benefited the economy in recent years. In a politically charged election year, the facts are often ignored as hyperbole takes over.
In my last column, I reminded readers that demonizing migrants is nothing new in American history. In a country that is constantly looking for someone to blame for their troubles, immigrants stand the test of time. One prominent candidate has even claimed that migrants are "not people in my opinion."
In a recent Wall Street Journal national poll in late February, 20 percent of 0 Comments
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@theMarket: Stocks Consolidating Near Highs Into End of First Quarter By Bill Schmick,
02:29PM / Friday, March 29, 2024 | |
An important government inflation metric, the Personal Consumption Expenditures Price Index (PCE), for February came in as expected on Good Friday. Since the markets were closed, as investors celebrate the three-day Easter holiday weekend, Monday, April 1, should be interesting.
Core PCE rose by 0.3 percent from the previous month. Year-over-year PCE prices rose by 2.8 percent, easing slightly from the 2.9 percent increase in January. The PCE is the Federal Reserve Bank's favorite inflation indicator. As such, it carries a lot more weight when determining whether the central bank will stand pat or decide to cut interest rates in the months ahead. The February numbers 0 Comments
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