We had quite a week with the election, CPI and the failure of crypto trading platform FTX.
Of most importance, the various averages and indexes put in a positive week as the earnings season comes to an end.
We are not that far from the holidays.
I have always contended that the season actually starts with Halloween.
In case you have been putting up decorations and were distracted, your monthly statement for your retirement account has gained value.
For example, the Standard &Poor’s 500 stock-index has moved closer to 4000.
So much for my thoughts that we might see 3400.
The game isn’t over and it will be interesting to see where this all ends.
The elections last week left the Democratic Party with control of the Senate and we have yet to determine the final makeup of the House.
My best scenario would be for gridlock to be the fare at the table.
I am a firm believer that less government is the best.
That comes with the announcement that the core potion of CPI didn’t increase as much as in the past.
I did not say that it actually went down, but investors again jumped on the idea that the Federal Reserve might slow increasing rates or even stop sooner than later.
I still think that getting 5% on Treasuries will move a lot of cash off the sidelines, dropping demand for equities.
The real news outside of Twitter was the collapse of the crypto trading platform FTX resulting in billions lost.
That did not help the value of Bitcoin, which fell to 15,000 before climbing back to 17,000.
Now the debate rages as to the future of crypto and how it will be regulated.
It was not just 20- somethings that lost money.
There was a long list of celebrities who invested in FTX and with the bankruptcy filing are probably in a long line of investors that have lost everything they invested.
Some overlooked the news that China is opening up the lockdowns to fight COVID.
It also appears that the supply chain problems out of China are starting to be resolved.
That should help the supply problem.
It won’t, however, help those of us who turned on our heaters this weekend.
The shock of your heating bill will make filling your car pale in comparison.
In case you haven’t noticed, natural gas is up over twice the price last year and some a forecasting the price going up much higher.
Another element of inflation to account for in the measures of CPI.
I would say though that the drop in home sales will impact such things as lumber and copper.
It won’t however help you when you go to the grocery store.
My needs are pretty basic and can get by, but I don’t reflect the multitude of families with children.
My biggest concern has been the increase in my favorite beer price.
A reduction in that demand won’t move the needle.
We still have a long way to go before there will be any real clarity it seems to me.