Registered Investment Adviser Caleb Lawrence
The major averages couldn’t hold their early gains but look to finish the week in the black. Since Monday the Standard and Poors 500 Index is up 40 points or 1.5%, while the NASDAQ has gained 136 points or 1.9%.
Import prices increased .3% in April on a large gain in petroleum prices. Export prices advanced .6%. So far, the various tariffs have had little effect on prices due to last minute exemptions but that could change. On a year ago basis Import Prices advanced 3.3% while Export Prices gained 3.8%.
It’s often said that crisis starts at the periphery and works its way back to the core. With interest rates on the rise and the Fed actively reducing its balance sheet. The flow of cheap easy money that’s blown record debt bubbles far and wide begins to go in reverse with devastating consequences. In addition to Bank of America reporting that last week saw 3.7 billion in emerging market outflows we have the Argentine currency crisis morphing into a debt crisis. Brazil has also featured financial instability of late, along with Mexico, Turkey, and Russia amongst others.