Financial Review

Illusion of Growth


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Inflation up, housing starts rebound, 1Q share buybacks at a new high, IMF eases on Greece, robot truckers, and Supremes punt. Financial Review by Sinclair Noe for 05-17-2016 DOW – 180 = 17,529 SPX – 19 = 2047 NAS – 59 = 4715 10 Y + .01 = 1.76% OIL + .78 = 48.50 GOLD + 5.10 = 1280.10   One day up, one day down. If you can spot a trend, give yourself a pat on the back.  Prices at the retail level increased in April at the fast pace in more than 3 years.  The CPI, or consumer price index, rose a seasonally adjusted 0.4% last month. Americans paid more for medical care, food, recreation, tobacco, motor vehicle insurance, airline fares and grooming. Much of the recent increase has been driven by higher oil prices. A spike in gas pushed the energy index up by 3.4% in April. Food prices also rose 0.2% last month, though the cost of groceries has fallen in the past year. Stripping out food and energy, so-called core consumer prices rose 0.2% in April. The CPI has risen just 1.1% in the past 12 months. The core CPI increased 2.1% in the 12 months ending in April.   So, we really are pretty close to the Fed’s target of 2%, depending on which numbers you, or the Fed, consider important. And so several Fed officials have been talking up the idea of a June rate hike, which just kills the mood on an otherwise beautiful ...
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Financial ReviewBy Sinclair Noe