The PPI and CPI were released late last week and while inflation was higher it was not beyond projections.
I know one thing, putting diesel in my truck is a financial obligation that I never thought I would have to undertake.
At nearly $6 per gallon, I spend more than a Benjamin just to put half a tank of fuel in my truck.
I may ride my motorcycle more than I want.
I know I will put off a couple of planned trips. Diesel drives this economy through trucking delivering almost everything. Even the things shipped by rail make the last miles in trucks.
All of those container ships are powered by diesel engines.
Any thought that the conflict in Iran will end soon seems to lack logic.
The leaders of Iran will let their citizens suffer to keep power.
They executed over 30,000 earlier this year just for protesting.
I may need to start eating into my backlog of reading material.
We are adaptable creatures and this may suggest change.
The Fed will meet this week to discuss what they will do with interest rates.
Most prognosticators suggest that interest rates will have to increase to fight inflation.
I understand the logic, but the only real thing that will halt inflation is a resolution to the conflict with Iran. The sad part is how vibrant the economy is during all these distractions.
The Treasury Secretary Scott Bessent has forecast that the GDP will grow at 3%.
While I sincerely respect his intellect, I am not drinking the Kool Aid.
If we grow the economy at that rate, there will be sufficient tax income to reduce the deficit.
That is a big IF. I know this week I will do my part sending in my quarterly estimate of taxes and it is no small check.
One of the big talking points this week is that we should pump the brakes on AI advancement.
I think that sounds good, but I am not sure you can stop an avalanche rolling down hill. Their are far too many trite expressions to use as analogies but suffice it to say that I don’t see any one slowing down.
I admit that being able to go to Chat GPT to find answers to questions I have for fixing things has been a blessing.
I have You Tube videos for visual backup.
I have taken on tasks I would never have dreamt of doing.
I don’t really believe I am displacing anyone service person, but that may not be right.
I do appreciate that I have a real concept of what is being fixed and how it is done.
I enjoy exploring the various viewpoints on where this market is headed.
You can find multiple opinions every day suggesting that we are in for a big move up toward the end of the year as well as others that promote the opposite.
We have been in such an upward movement for almost four years. You have to begin to think we are running against the odds.
Here at near record high levels one would be justified in being concerned more about capital preservation. Some are suggesting that investors look at ETFs associated with Europe or other foreign countries that haven’t grown as quickly as the States.
Truth be told, they might not be at record highs but bargains are far and few between. It is almost to the point that if you think you have found a bargain, it might in fact just be a lost cause.
I know there are more and more people starting to look at interest bearing instruments.
I am of such vintage that I remember people running around from one bank to another shopping for the highest yields on CDs paying double digits.
I hope we never go back to that but with interest rates on longer bonds touching near 5% it might be worth a look.
Moreover, with the competition for capital for data centers, municipals are paying an after-tax return above 6%.
I know bonds are dull but losing money is worse.
Maybe we all just need a distraction from all the noise around us concerning politics, economy and foreign affairs.
Well we at least have football. That of course assumes your favorite team is actually winning. Even then, I find many who can’t even appreciate a win not being by enough points. Makes me wonder what really makes us happy these days.