Registered Investment Adviser Caleb Lawrence
The major averages failed to hold their early gains once again entering the final hour with modest losses on little news, though another significant White House staffer hits the highway, this time Secretary of State Rex Tillerson.
The February Consumer Price Index or CPI advanced .2%, the year ago rate increased to 2.3% even with a much slower rate of advance for energy, goods, and food prices. Despite relentless media chatter about high and rising inflation it remains hard to come by using the various inflation measuring metrics. In fact, Central Banks the world over unable to muster what is perceived as the appropriate level of inflation, and in fact terrified of deflation seek to alter the storyline. If they stopped blowing a series of inherently deflationary credit bubbles that would be a great place to start, but apparently, they seem to think that hedonic adjustments or just plain refocusing the narrative on something else is a better strategy. So much for the ounce of prevention is worth a pound of cure idea. As this close the barn door after the horse has bolted approach smacks of the disingenuous at best claim that destabilizing asset bubbles can’t be seen in advance, followed by the mea culpa of clean up the mess after the fact using huge taxpayer funded bailouts of the leading corporate culprits. Effectively socializing losses at taxpayer expense, whilst everyone stands around and says, “I didn’t know” and hits the reset button. I hope to god it’s different this time as the debt and valuation levels suggest that the price to be paid will be far higher than the Dot-Com or Great Financial Crises.