The inflation scare is spooking the market, but it is not raising red or even yellow flags where it was supposed to.
The ten-year yield is flat and continues to edge down from the spike a couple months ago.
The VIX is higher but not screaming fear...
I am in the camp of those that see inflation as transitory. But there are a lot of issues, including the upcoming wave of higher taxes. The fact is, the market hasn't regained its swagger since the Biden administration started talking about sky high taxes on every level.
There is hope sanity reigns, and those ambitions to achieve social justice via the tax code are thwarted, so we can get true shared prosperity by letting the economy rock on its own and let people participate.
Cash is still precious. Once the FOMC minutes are out, and we get a night to sleep on it, we might be ready to become very aggressive. So if you are not a current subscriber to our premium Hotline service, email Info@wstreet.com to get started today.
Please do not panic.