Friday, March 9, 2007

Forgotten Inflation

All the babblers doing the high fives on the moderate jobs number this AM seem to have forgotten inflation. The S&P futures popped 8-9 points up. Hmmm. From my bunker, the big problem is a possible re-acceleration of inflation. Last month's CPI number set off the correction in my view, as it possibly flagged a true inflection point: a change in trend from decreasing inflation to increasing inflation. So I'm going to sit & wait.

PS: I remembered the productivity number stunk, too. So that's not going to reduce inflation pressures.

5 comments:

mern said...

seems pretty crazy but the q's and FXY seem almost 100% corelated

Bunkerman said...

What's FXY - Yen?

mern said...

ya new etf. i see some buyers there, lets see if we rinse

mern said...

FXY day lo's

putting some longs on lol

mern said...

that was fun. put em on, they all went green, thought, that cant be right, sold all. made 300 bucks. this is one boring tape