PPI continues to increase inflation concerns, but with the CPI last week appearing relatively tame, stock index futures are ignoring the inflation data and moving higher. We need to keep in mind, however, that producer prices take 6-9 months to reflect in the CPI. Thus, the worst inflation may be yet to come.
I have noticed over time that stock traders like inflation because it create the illusion of prosperity, and the corporations don't need to do anything to earn that illusion. It drives the stock market higher, and no one cares. Stock price inflation is not only accepted. It's welcomed!
I have noticed over time that stock traders like inflation because it create the illusion of prosperity, and the corporations don't need to do anything to earn that illusion. It drives the stock market higher, and no one cares. Stock price inflation is not only accepted. It's welcomed!
