Tuesday, October 21, 2014

Market Volatility Since the 2008 Financial Crisis

Recent market volatility has been the result of the stock market. I expect the next crises in the economy to fool everyone and come from entirely different directions: The bond market and price inflation. It won't happen right away because declining energy prices will subdue the price inflation indices for awhile, but once the energy price declines are factored in watch out.

1 comment:

  1. Interesting. The NFIB small business survey lists inflation as the second lowest concern (only interest rates rank lower).



    Seasonally adjusted, the net percent of owners raising selling prices was a net 4 percent, down 2 points after a surprising 8 percentage point decline in August. Seasonally adjusted, a net 16 percent plan price hikes (down 3 points). These developments are good news to the Federal Reserve, making them more comfortable providing “accommodation” even though there isn’t much evidence to support the notion that buying bonds is helping the employment picture or creating the “desired” inflation.