The Fed keeps printing money, Congress keeps spending money, and the market keeps going up! It will go up forever right?
I distinctly remember Alan Greenspan's comments in 1996 about 'irrational exuberance' when toiling on 'The Street', as the market kept going up and up past 7,000 on the Dow for the Y2K internet bubble (Hint - it eventually went down, or in other words -- the bubble popped).
The recent rate scare in our view was the tip of the iceberg. Inflation is coming. It is going to hit the markets hard. The Biden economy will be horrendously punishing to America. All on purpose of course. Chairman Xi wants his pound of flesh and Beijing Biden will deliver.
The irresponsible fiscal and monetary policy, no not policy, let's call it idiocy, will bite like a wounded dog. The only question is when.
Oil is moving higher. Rates are moving higher. Inflation is moving higher. The economy will slow at some point due to Biden policies.
Jimmy Carter anyone?
Markit Manufacturing PMI (Feb) printed at the consensus estimate of 58.6.
ISM Manufacturing Employment Index (Feb) printed at 54.4 vs 53 estimate.
ISM Manufacturing PMI (Feb) printed at 60.8 vs 58.8 estimate.
ISM Manufacturing Prices Paid (Feb) printed at 86 vs 80 estimate.
ISM Manufacturing New Orders Index (Feb) printed at 64.8.
Construction Spending (MoM) (Jan) printed at 1.7% vs 0.8% estimate.
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