We are in October and the various averages and indexes climbed last week to levels not seen since the end of June.
While that was excellent, there is plenty of concern to go around. The price at the pump is climbing. I saw a sign this weekend with a price for regular over $3.
Not a significant jump, but we start the week with crude climbing to over $80 per barrel. The concern is that is the start. Some projections see $100 a barrel.
That will have a huge impact on inflation. I’m sure you couldn’t miss the rise in prices with any visit to the grocery store.
As an older person, my expenses are limited, but my children face rising prices for almost everything they need to provide for their families.
There also is the supply chain problem and the lack of people seeking job vacancies.
If that doesn’t make you want to hide until the storm passes, you have considerable optimism or you ignore the news.
I consume way too much news as I find it interesting versus disturbing.
I try to connect the dots and figure out what I don’t know, which is vast.
I know it can make you worry about what is coming next, especially of the negative nature. I still believe there is opportunity around every corner.
I feel that as a society, we have entered a period of vitriol when it comes to discussing differences of opinion.
It is particularly vicious when it comes to politics and now the economy.
This comes as society realizes almost everything is affected by how the economy.
Either growing or shrinking, the economy impacts our lifestyles. Politicians craft their messages to voters to reflect the policies they support as a positive for the economy.
Both sides spout theories with little basis in history.
I worry that we’re more interested in our side winning than looking honestly at the task at hand.
It is always easier to blame the other guy than take responsibility for bad decisions.
From my point of view, we will start receiving earnings reports this week from the financial sector, which will be very positive.
The third quarter had its problems but earnings will be positive.
We are at record high levels as there is too much money chasing equities as the alternatives are not that great.
We will still have low interest rates even if the Fed board members finally come to their senses and raise rates to recognize the inflation the rest of us already know is here.
Problems with the supply chain and labor shortages will be overcome, but will come at a price.
I believe this economy is strong and will move forward sustaining the bull market.
I also believe we will get a scare. Corrections are not the end of the world and are a normal course of market activity.
I’m afraid there could be an overreaction.
But we will move past it and have time for more growth and gains in our investments next year.
