(As of 7:30 am pacific)
A reminder that inflation is
not dead. Wholesale prices rose by half
a percent, due in large part to the drought that has reduced global crop
yields. It appears the Fed has resumed
bond purchases, as mortgage rates have dipped again, but the ten year bond
yield is up slightly. Oil is up while
gold is down and the dollar is up moderately.
The market is showing some real strength. Volatility is at a five year low. Retail sales were greater than expected. My
sense is that a strong undercurrent is building in the market and another
positive economic report such as home sales or employment could trigger a
significant rally. Europe had some
mildly positive news, but is generally quiet which is good for US markets.
