We continue sharing a collection of charts with you that we find particularly interesting. These charts identify investment and economic trends in the markets.
There are a few trends to watch as our country recovers from the COVID-19 pandemic and resulting lock down. To cope with this tragedy, our government is injecting enormous amount of stimulus into our economy, much of it as direct payments to its citizens.
So, a surge in consumer spending is beginning as our economy opens up. This increasing demand is straining existing supplies and driving prices higher. So far, this inflation has been somewhat limited and is anticipated to be ‘transitory’ or short lived.
The open question is whether a longer term inflationary effect is coming and what does that mean for our financial markets?
The current edition reviews the following:
• The surge in consumer spending.
• The limited increase in the the Consumer Price Index.
• The surge in the Producer Price Index.
• The long history of mortgage rates; which remain subdued.
As always, know what you own, do no overinvest, and stick with quality.
-Cliff Jarvis
Download the April Chartbook