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Wholesale prices surge 11% in April as rising food costs keep inflation near record highs - grains jump 41% and eggs soar 161%


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#1 pdx5

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Posted 12 May 2022 - 02:11 PM

https://www.dailymai...costs-soar.html

 

This market is now under control of inflation numbers more than any other factor.

Just watch inflation numbers to understand next move.

Sentiment and all that data is not useful in these conditions.


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#2 fib_1618

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Posted 12 May 2022 - 02:19 PM

The true driving force of equity prices moving lower is rising interest rates which reduce market liquidity.

 

In essence, it's a misguided way of reducing demand so that supply can catch up and reduce inflationary tendencies.

 

This time, though, the old ways are not the correct ways of making things right...current political policy must change for that to happen.

 

Fib


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#3 pdx5

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Posted 12 May 2022 - 02:21 PM

Inflation and rising interest rates are conjugal twins.

 

ARTIFICIAL Low interest rates cause artificial demand, creates bubbles, and every bubble in history eventually gets popped violently causing hardships to many. FED's job is to NOT control economic cycles. FED was created to protect US currency, and it has failed miserably since the day it was created until now. FED only caused the US $ to go from 1$ to a few penny's today. Most people on FED are academics and professors from past. They rely on theoretical models too much and lack basic common sense of the main street economy.

 

The real lesson is do not stimulate economy more than what productivity gains can sustain. 


Edited by pdx5, 12 May 2022 - 02:28 PM.

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#4 fib_1618

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Posted 12 May 2022 - 02:33 PM

Inflation and rising interest rates are conjugal twins.

 

Not necessarily...remember we had rising prices for over 4 years while Fed policy remained with QE4 which kept the cost of money low, which kept liquidity high.

 

And then there's the theory that inflation means higher precious metals prices...again, not necessarily.

 

Rising gold prices suggests inflationary expectations because of the excess capital that's produced by lower rates when all else is fairly valued.

 

As we learned with Paul Volker, rising interest rates hurt more than they help in subsiding inflation...market liquidity is then the key for higher stock prices.

 

Fib


Edited by fib_1618, 12 May 2022 - 02:34 PM.

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#5 pdx5

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Posted 12 May 2022 - 05:58 PM

You are entitled to your esteemed opinion. 

My undervalued opinion is Volcker's killing the incorrigible inflation ushered many years of prosperity, stock market advance and job creation under the low inflation background.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#6 fib_1618

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Posted 12 May 2022 - 06:06 PM

You are entitled to your esteemed opinion. 

My undervalued opinion is Volcker's killing the incorrigible inflation ushered many years of prosperity, stock market advance and job creation under the low inflation background.

 

Yes...he did so by reducing interest rates.

 

How easy people forget...esteemed or not.

 

Fib


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#7 pdx5

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Posted 12 May 2022 - 11:26 PM

 

You are entitled to your esteemed opinion. 

My undervalued opinion is Volcker's killing the incorrigible inflation ushered many years of prosperity, stock market advance and job creation under the low inflation background.

 

Yes...he did so by reducing interest rates.

 

How easy people forget...esteemed or not.

 

Fib

 

Please stop the BS. Volcker RAISED rates FITST to double digits.

Only when inflation was vanquished, he reduced rates.

Stop acting like a politician and state partial truths.

It does not wear well for an outstanding stock trader like you.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#8 fib_1618

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Posted 14 May 2022 - 02:24 PM

 

 

You are entitled to your esteemed opinion. 

My undervalued opinion is Volcker's killing the incorrigible inflation ushered many years of prosperity, stock market advance and job creation under the low inflation background.

 

Yes...he did so by reducing interest rates.

 

How easy people forget...esteemed or not.

 

Please stop the BS. Volcker RAISED rates FIRST to double digits.

Only when inflation was vanquished, he reduced rates.

 

Yes and no...it's been 40 years, so we do tend to forget what really happened.

 

Fib

 

fedfunds051422.png

 

http://www.technical...funds051422.png


Edited by fib_1618, 14 May 2022 - 03:57 PM.

Better to ignore me than abhor me.

“Wise men don't need advice. Fools won't take it” - Benjamin Franklin

 

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

 

Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.

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#9 Rogerdodger

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Posted 16 May 2022 - 08:09 AM

Monday, the New York Federal Reserve said that its Empire State manufacturing survey's general business conditions index dropped to a reading of -11.6 in May, down from April’s reading of 24.6. The data significantly missed expectations as consensus forecasts were looking for a reading of around 15.3

.

 

Expecting +15.3... got -11.6!

 

Looks dismal especially after April's report.

The New York Empire State Manufacturing Index jumped to 24.6 in April of 2022, rebounding from a 22-month low of -11.8 in March, and easily beating market  expectations.

.


Edited by Rogerdodger, 16 May 2022 - 08:13 AM.