Re: Financial topics
Posted: Mon Jul 11, 2022 8:37 am
Yes, it seems 8.8% is the consensus. Seems the CPI reports kind of make the market react a bit and then the next FOMC dot plots show inflation rapidly dropping back down to 2% and the market calms down. The strange thing is that people keep believing the FOMC even though inflation keeps going higher and not rapidly dropping back to 2% as they have been wrongly predicting for a year. The high P/E ratios and low yields on bonds indicate the market still thinks this inflation is transitory, even though it has kept going up. I don't know how many more rising CPI reports it would take to shock the market. I am amazed it is not already shocked. Hard to imagine it could take 6 months more, but did not think it would take 8.8% either.richard5za wrote: Mon Jul 11, 2022 6:41 am Mr. Vince:
Do you think we might be seeing 8.8% for June in just 2 days time? It seems accepted that June will be above May. The fascinating matter is not the high inflation, after all that was purchased with lots of money printing, but when will the market react?