Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Philstockworld (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Thrill is Back Thursday – Markets Recover Ahead of the Fed Next Week

% of readers think this story is Fact. Add your two cents.


I don’t know what people think is going to happen? 

The Fed meets next week and they certainly aren’t going to LOWER rates, are they?  According to Powell and others, they are in no hurry to raise them but, as you can see from this chart, inflation is rising about twice as fast as wages so our workers are falling further and further behind in buying power.  This effect is, however, masked by stimulus checks that boost spending power – that’s the key to our “great” economy this year.

Labor supply shortages are still evident across all sorts of industries. The latest survey of manufacturers from the Institute for Supply Management cites complaints from makers of furniture, chemical products, machinery and electrical products about the difficulties of fulfilling demand and that hurts growth and growth is what the economy is all about, right?

Rents are starting to rise sharply, according to a range of data sources. And businesses facing higher prices for Supplies and Labor may be in the early stages yet of passing on those higher costs to consumers. The Producer Price Index, which tracks the costs of the supplies and services that companies buy, rose 1% in June, an acceleration from April and May. This is a signal that inflationary forces may still be working their way through the economy.

It is supposed to be the Fed’s job to prevent prices from going up more than 2% by raising rates but, with inflation up 4% in the first 6 months of the year, the Fed is too busy lying to us about how strong (but weak) the economy is, which gives them the excuse to keep printing up $120Bn per month and distributing it to their Bankster Buddies (keep in mind the Fed is not a Government body but a banking cartel that is blessed by the Government – after many contributions from Banksters).  

ImageMeanwhile, all this free money is keeping earnings afloat for most companies (so far) but next week will be telling as the bulk of the S&P 500 will be reporting.  So far, earnings have generally beaten fairly low expectations as few companies are matching their 2019 performance but that doesn’t matter as they only compare themselves to last year, when we were in the first stage of the lockdown in Q2.

Stocks are not supposed to be graded on a curve but it’s easy A’s all around this quarter with $8Tn worth of stimulus added to the mix.  In fact, if you want to get an idea of how much stimulus drives this economy and who is benefiting – just take a look at the monthly Retail Sales numbers:

Image

You can see the months after the stimulus checks came out – they are the green ones.  The rest is pretty red or barely green but watch out for Furniture, which was down 3.5% last month (we’re short Wayfair) and gasoline sales may be up 2.5% but gasoline was $2.18 last year and now it’s $3.15 so figure 50% more expensive at the pump and ONLY a 2.5% increase in sales – that is NOT an indication of healthy demand growth.

Still, there IS stimulus and it WILL continue so we will continue to add bullish positions until those bounce lines we discussed on Tuesday finally do begin to fail.  For the moment, however, all is well and even the russell is well over 2,160 so, as long as we hold that into the weekend – it should be smooth sailing into the Fed next Wednesday.  

   

 

And, by the way, if I asked you if you thought the US was doing better or worse on daily covid infections than we were last July – what would you say?

Image

How about now?

The UK is actually back to it’s HIGHEST level of daily infections already.  

Be careful out there.

 

 

Provided courtesy of Phil’s Stock World.

Would you like to read up-to-date articles on the day they are posted? Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE – Not the Gambler!



Source: https://www.philstockworld.com/2021/07/22/thrill-is-back-thursday-markets-recover-ahead-of-the-fed-next-week/?utm_source=beforeitsnews&utm_medium=feed&utm_campaign=psw-feeds&utm_content=article-link


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.