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.
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.
