From higher apartment rental rates to ongoing supply chain issues, there are reasons to believe rising prices are anything but transitory.
While supply-chain constraints are a global problem, consumer-level inflation is not yet as broad a problem, or at least not evenly distributed.
It is still early, but the character of the market action shifted on Wednesday, and the potential for a new uptrend is increasing.
The real issue is that they don't know and are just hoping that "inflation is transitory".
There probably will be an intense period of market volatility that could stretch farther out than even I projected a couple of months ago.
CPI, Fed minutes, and earnings are hitting today as the market continues to struggle with corrective action.
In what must seem to be a somewhat stunning solution, several mass retailers have taken the margin pressuring step to charter smaller ships and reroute cargo.
The question now is whether the lows that were hit on Wednesday morning will serve as short-term support as we move into earnings season.
China's economy is basically a debt-driven Ponzi scheme.
Having a debt ceiling is foolish, it only ever matters to the party currently out of power and never really does what it was intended to... curb federal spending.
Despite a largely unfazed market, here's why I remain very cautious overall.
Can you please name me an industry that isn't impacted by this inflationary monster?
I'm looking for a continuation of strong pockets of speculative action.
Like spilled milk, there is no use in crying over lost monetary opportunity that only increases economic risk at a bad time fiscally now.
When growth starts to slow and inflation moves higher - that's the most unfavorable set of conditions. And that's exactly the market's nervousness right now.
Despite vaccinations the number of Americans contracting the virus is far greater than a year ago, which stands to impact businesses of all sorts.
Does the cooler core CPI print give the fiscal doves a leg up in negotiating the size and scope of whatever they'll end up passing, probably later this month?
My trades? What am I doing? Maintaining not gargantuan, but elevated cash levels. Not going crazy.
The spread of COVID's latest and scariest variants continue to warp economies across the planet, preventing commerce from functioning more normally.
The market's overall upside reward is materially dwarfed by the downside risk.
The Fed is convinced that endless money printing has no negative consequences.
This payroll result should be a reminder that just because there aren't a lot of new legal restrictions doesn't mean consumers won't change behavior.
Despite my pessimism on the market, when the music is playing you have to dance.
Plus, Morgan Stanley sharply lowers its third-quarter GDP expectations and Dr. Fauci provides little COVID comfort.
The overall market seems to be mispricing the threats of rapidly increasing prices and the fast-spreading Delta variant.
The primary issue with seasonality is that it can be a good excuse for corrective action in the right environment.
The largest tech investors in Asia and Africa are scouring India for prospects after souring on China.
That's the challenge for the Fed as it tries to determine the timing of tighter policy.
For now, it remains a guessing game. So until then, enjoy the free ride.
Plus, a look at Dollar General and Peloton Interactive, which both disappointed with their announcements on Thursday.