Edgar Peters
Edgar Peters
bargain cow hunting mad maybe people thinking
People are thinking maybe there was an overreaction to the mad cow issue, and there is a little bargain hunting going on,
benign concern consumer fears higher increase inflation interest investors major market numbers rates reacting relief sensitive showing stock stocks wonder
Fears of inflation and of higher rates were a major concern for investors, and with today's numbers showing a benign increase in consumer prices, it's no wonder the stock market is reacting this way. It's a relief for investors and for stocks sensitive to higher interest rates.
bond bonds economy fast given inflation justify levels low offer slowing stocks yield
Bonds at these yield levels offer very little value. Inflation is low but it's not that low to justify bond buying, especially given the U.S. economy is not slowing at a fast pace. Stocks offer a much better value.
act change fed monetary next raising rates seen stocks symbolic temporary
Even if the Fed skips raising rates at the next meeting, it has to be seen as a symbolic act and not as a change in monetary policy. Stocks would only get a temporary boost.
companies control costs fast growing increase leverage revenue though
Even though revenue is not growing as fast as profits, companies have been able to leverage what they have. Companies have been able to control costs and increase productivity.
activity certainly encourages merger people seeing signal
Certainly seeing more merger and acquisition activity going on encourages people too because it's a signal to them that things are undervalued.
certainly decline ease energy helping high markets oil prices
With energy prices at such high levels, any decline is very positive. The ease in oil is certainly helping the markets today.
buy days finally relief seeing selling
You are seeing a relief rally. After all the days of selling we've been having, we can finally buy now.
fed funds likely raise rate
It's much more likely now, I think, that the Fed will raise the fed funds rate to at least 5 percent.
above firmness overcome showing stay weakness
It was encouraging that the Dow managed to stay above 11,000 yesterday, showing some firmness at that level. We may see some weakness linger, but we should overcome it.
bets economic large today trading volume
Trading volume is dwindling and we are probably not going to see large bets today and tomorrow, and especially after inconclusive economic data.
concerned neutral rate
They're still concerned about inflation. So I think we're in for at least one more rate hike, probably two. But things were put in a much more neutral tone.
concerned costs economy employment fed quite report rising strong
The report showed the economy is quite strong and employment costs are rising and that's what the Fed is going to be concerned about.
believe close ending fed good market rate stock time
This is probably as good as it's going to get for the stock market any time soon. I don't believe the Fed is actually close to ending the rate hikes.