This is true RangerRay... and it looks like Good economic news is Bad news for the market due to fears of higher inflation, which could trigger the Federal Reserve to increase (Fed funds) interest rates in the Future.
I know Fed keeps saying they will not raise interest rates until they know inflation is more than "transitory"/temporary, but seems the market is not buying it. So, if the unemployment numbers are good tomorrow I should think market drops more. Only think that because last month the numbers were expected to show high employment increase (good) and instead came out very short (bad)! But...Market was happy about it.
I think the reason Market is not buying the thing about inflation not rising is because we can see the price increases at the pump, grocery store and in lumber and cost to build homes, etc. Plus if your looking for graphic cards or chips for cars, good luck! Not many to be found...Supply Issue is causing price increases. Son looking to upgrade graphics card and even used ones are 2x, 3x higher on Ebay.
Also, I am getting offers to buy our Used cars for very high prices....demand is high! This past weekend, my Brother in law said Ford dealer only had about 100 cars on lot, when they usually have 300-400. Also, friend wanted to buy Mercedes but was told new one did not have one electrical part on it because it had been taken out and placed on repaired vehicle...so have to wait on part to sell it to her a new car. They are scalping their own products due to lack of parts from factory!
Same goes for homes here in Texas... getting several offers per week and no longer answering phone. CA folks coming in droves and causing rents and housing prices to go up dramatically! But I guess as long as Fed considers price increases to be transitory they will not raise rates. God help us when they do, as I am thinking the house of cards based on low interest rates for ginormous Federal debt will eventually make the house implode! Hummm... so where should we store our nuts????
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