HH, I don't give much credence to the PPI numbers since the govt. jerrymandered inflation numbers to make them lower. Also, we don't have huge inflation in producer goods. What we have is huge inflation in financial assets. Some is spilling to real assets, such as real estate, but that isn't in producer price figures.
My guess is, no matter how long the bulls ignore it, it is the deadly duo of the trade deficit and the way the Treasury is printing money that will bring the bull to a close. That will eventually be translated to the CPI and the PPI, as the dollar becomes worth less, not worthless <G>, but, so far, nobody seems concerned that are #1 export is greenbacks.
MB |
