Thursday, June 20, 2013

Market Thoughts

Still in cash. The market selling, they say, because of Fed plans to "taper" and poor Chinese PMI. Although, did the Fed really say anything new or unexpected? Did the news of slowing growth in china surprise anyone?

There are a lot of profits in the market and the battle is always between fear and greed. So maybe this is fear taking over and people want to book their games ahead of summer.

A lot of people have been worried about inflation yet have we seen inflation? Well, maybe we have. Maybe the inflation has been in stock prices and real estate. After all, It seems as if most of the quantitative easing money has gone to banks and the rich and we really haven't seen the money get pushed into wages. And wage inflation is one of the things that would push up prices of everything. But instead, what we've seen is stock prices go up and real estate values go up so maybe that's where the inflation is.

Of course, with unemployment so high, there doesn't seem to be a reason to raise wages to fight over workers. It also seems as if we have enough supply of workers to meet current demand.

Anyways, I'm just thinking out loud.

So, I remain in cash. I still expect a summer correction. Nothing really has changed!

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