So much for letting the good times roll as the various indexes and average dropped last week.
The jobs report on Saturday came in stronger than expected, leading to fears that the Fed would remain hawkish to fight inflation.
The general belief now is that there will be 50 point bumps in June and July.
Even with that 1% move, rates will still be relatively low historically.
Don’t panic if you look for a quote for your Amazon stock, as it split 20-1 dropping the price to
around $126 per share.
There is some speculation that the stock might be included in the Dow average at this lower price.
Apple is to announce new products this week and it is thought it would be a watch and Air Mac Pro.
The markets could use the distraction as the sequel to Top Gun wasn’t enough to distract investors from concerns over inflation.
It is just difficult to escape rising costs when gas is headed to $5 a gallon.
I can’t imagine what it must be like to fill up an 18 wheeler.
It is hard to see a recession yet, with record high tax collections by the Federal government.
This time around, sales are being reflected as short-term capital gains which are taxed at a higher rate.
The recession may come, but the economy is still strong.
Sooner than later though, the consumer is going to slam on the brakes.
That is the only real answer to inflation when demand drops as a reaction to sky high prices.
