Inflation is real. Those like Cathie Wood, who are telling you it is going to go away, because of technology or crypto or whatever, are selling you a dreamworld. Yesterday, the producer price index came in at 9.6% annualized rate. That’s a record reading and is what is happening in the real world.
There is going to be an FOMC meeting today and you can expect the Federal Reserve to pave the way for the start of a rate hiking cycle next year with its statement and to speed up the pace of its QE money printing withdrawal. Everyone knows what the Federal Reserve is going to do, because it has leaked its plans to the WSJ and NY Times last week in articles you have to access through a paywall. It’s already scripted. Yesterday, the CNBC did an article on it all if you want to read something for free, including what he will try to say in his press conference after the FOMC statement is released:
The Federal Reserve is expected to take a very big step toward its first rate hike – CNBC
The markets had faded in the past few sessions into this meeting. Typically if the markets falls into a perceived negative event it then bounces in the days that follow. I’m hopeful that will be the case, but at the same time I believe that the odds are that we are witnessing the final stock market rally. I mark the start of this rally as being the other week when the VIX went above 30. I’m not sure how much longer it will last, but we’ll have a better idea by the end of the week, but never forget that right now the most important stock market chart and indicator is flashing red.
I talked with Jim Goddard of www.howestreet.com about the markets in this interview:
This year Jeff Bezos and Elon Musk have both sold over $10 billion worth of stock.
That is what the insiders and big money players are doing in the markets.
They are selling and not buying.
-Mike
