Big Story, Today

The big story remains, “where is the Funny Money now?”

This comparison will go on until one of two things happen:

  1. real interest rates go to 2.5 % (the average for maybe the past 1000 years) which with todays inflation rate would be 9.5 %…
  2. or 2.5 Trillion dollars of the FED Balance sheet is withdrawn…
  3. 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.

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