What a strange world we live in. On Wednesday the latest inflation reading showed the annual inflation rate dropping to 3%. Stocks rocketed higher on the news because in May the annual inflation rate (according to the CPI) was 4%. As we outlined last week, the "no landing" case has
2023 started with forecasts of such a sharp economic slowdown the Federal Reserve would not only stop raising rates but would cut them before the end of the year. As consumers continue to spend money despite high inflation and high interest rates the forecasts have now shifted to no recession
We're starting the 2nd half of the year with a disjointed trading week. Monday is a half day and the markets are closed on Tuesday. This should give investors/speculators a chance to take a breath and assess the outlook for the rest of the year.
In case you missed
Last week I started the Musings with some quotes from some famous investment managers. The key takeaway from all of them was essentially, "stock prices reflect the feelings of the market at the current time not the underlying value of a company." Long-term, the true value always shakes out, but
“Markets can remain irrational longer than you can remain solvent” – John Maynard Keynes
“Quotations fluctuate constantly, reacting often illogically to all sorts of temporary and even trivial influences.” – Benjamin Graham
“The Stock Market is the story of cycles and of the human behavior that is responsible for overreactions in both
