Big Story, Today
The big story remains, “where is the Funny Money now?”
This comparison will go on until one of two things happen:
- real interest rates go to 2.5 % (the average for maybe the past 1000 years) which with todays inflation rate would be 9.5 %…
- or 2.5 Trillion dollars of the FED Balance sheet is withdrawn…
- So no action to stop it currently.
Today it looks like it is starting to move from oil, and probably commodities, back to over-priced stocks. If you look at the SPX / Oil chart here you will see the last change was in June when the money moved from stocks to oil. The change occurring now should ultimately be good for resource-based inflation numbers.