We had a positive week for the S&P 500 ending the week above 5900.
It is no record close, but not that far away.
The Fed’s preferred measure of inflation, Personal Consumption Expenditures (PCE), came in Friday at just a tick above 2%.
It certainly makes it hard to justify a rate cut to stimulate the economy when you also have rising wages and low unemployment.
To counter all that good news, you have a spending bill that will further enlarge the U.S. debt.
It is not like one can have all
good news.
Moreover, the ability to negotiate tariffs has hit a few bumps in the road with the courts questioning whether the Executive Branch even has the right to do such.
One thing that is getting put on the back burner of late is the speculation about a looming recession.
That was all based on the belief that the tariffs would significantly impact earnings.
I still believe in some way it has to be a hurdle that companies will not be able to absorb.
I understand how a booming economy lifts all ships in the bay, but let’s get real.
While there is this constant wringing of hands over the cost of tariffs, little seems to be mentioned about the cutting of trade barriers with areas like Europe and Asia.
A reduction across the board should benefit companies here at home.
I am not dancing through the daisies and ignoring all the foreign policy problems.
Nothing has been done in Gaza to stop the fighting, much less Ukraine.
It does appear the Middle East is getting the notice that we will not ignore aggression, but Iran doesn’t seem to have gotten the email.
It does seem that it will be a long summer of debates on the good or bad of each issue.
Unfortunately for those of us out here in the Hinterland, those commenting don’t care what we think in general.
They all have personal agendas that we are to adhere to without question or logic.
It seems rather difficult to believe that we can march ahead that much more though.
As such, you know my track record, obviously time to buy.
Just giving you the heads up.
I would say there might be money to be made with old-line companies that pay dividends.
They are not bargains, but they do pay you more than the bank to wait around.
If you have no tolerance for risk, Treasuries are still paying over 4%.
You won’t get rich, but you also won’t be wasting your summer days watching some financial channel.
I would suggest finding a good book and kicking back.
I would follow my own advice but every day I wake up, there is something else that I have to fix.
That is my very minute contribution to the economy.
Small as it may be for the country, it is eating into my budget for pleasure.
As thrifty as I try to be, I just pay whatever like all the rest.
I complain, but what are you going to do.