Category Archives: Inflation

The Summer Recovery is Repeating

The Summer Recovery is Repeating | RSS.com And for the same reason: Investors think inflation is heading lower. The Reserve Bank of Australia raised its key rate less than expected, and yields and the dollar cooled off at the beginning of this week. That kicked off October with the biggest two-day rise in the S&P […]

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Feel Better: High Interest Rates Won’t Kill Stocks

Feel Better: High Interest Rates Won’t Kill Stocks | RSS.com Inflation is much more important. Stocks have done well in both rising and falling interest rate environments. Inflation is the bigger danger, and the Fed is fighting it hard. Good news: Stocks do very well in falling inflation environments—and we should be heading into one. […]

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How High Will Interest Rates Go?

How High Will Interest Rates Go? | RSS.com About as high as investors thought last spring. Emotions are running hot, bouncing from expecting the Fed to get more aggressive to expecting them to slow down, but projections haven’t changed. ——— Links to Resources Mentioned “Consumer Price Index – August 2022,” Bureau of Labor Statistics, September […]

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My Weimar Reference

My reference to Weimar in last Sunday’s Kelly Letter confused a number of readers. Allow me to clear it up. I wrote: “…a contingent of economists staking careers on inflation warnings willfully ignored, and ignore, assurances from the Federal Reserve and other central banks that it is transitory. It makes perfect sense why early data […]

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Small Caps Dominate Post-Vaccine Market

Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen made their first joint appearance before Congress yesterday, delivering remarks to the House Committee on Financial Services. Questioned yet again about inflation, Powell said: “We’ve been living in a world of strong disinflationary pressures for the past quarter century. We don’t think a one-time surge […]

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