The markets are heckled. Things just came back after a period of euphoria. Should we be alarmed? Never, because stock market investing is aimed at the long term. What are the news ? In November or December, the FED will announce a reduction in the flow of the money watering can. This should not disrupt the markets which have anticipated this false news, as the Fed is doing all it can to achieve a soft landing. I am more perplexed by continued inflation. On the one hand, the recovery in consumption is amplifying supply problems and prices are rising. Until when ? I am thinking of a relative low in consumption that will give factories time to replenish stocks and containers to return to their destination. So a few months after the Chinese New Year, presumably sometime in the summer. On the other hand, some ex-employees whose work was not valued up to the constraints endured would be reluctant to return to their jobs. Wage increases will follow, but which I think will only be a fair catch-up and go no further. Employers will have to pass these wage increases on to prices and since the majority will not have seen their incomes increase in proportion, the effect should slowly fade away. You can find my previous opinions on the adapera.com site. Good day !
