Text size While payroll growth has slowed from the average pace of more than 500,000 over the past 12 months, consumer price inflation stands at over 8%. David Paul Morris/Bloomberg Good news for jobs is again bad news for stocks and bonds. A stronger-than-expected jobs report in May means the Federal Reserve remains on track … [Read more…]
In the war against inflation, an old weapon is under new scrutiny. Governments have three main means of fighting inflation: monetary policy, fiscal policy and price control. Tightening the money supply, primarily by raising interest rates, often works slowly frustrating. Fiscal discipline requires a wacky scenario of politicians suddenly agreeing to tighten their belts. It … [Read more…]
Everyone wants to know when the stock market, after its recent declines, will return to good value. The sobering news is that even at its lowest point in mid-May, the S&P 500 index was not even close to being undervalued by any of eight valuation models which, according to my research, have the best long-term … [Read more…]