Amid Rising Inflation Fears, Parabolic Growth In M2 Money Supply, But Velocity Docile

posted in: Credit, Economy | 0

Massive growth in money supply could potentially lead to inflationary pressures. But the velocity of money is near record lows. As things stand, inflation expectations are perking up near term but remain suppressed further out. Chart 1 is forcing investors … Continued

VIX Craters Last Week, Landing On Low-20s Support, Breach Of Which Can Bring More Good News For Equity Bulls

Reversing the prior week’s weakness, major US equity indices put up strong performance last week. The S&P 500, for instance, defended a rising trend line from last March. VIX collapsed, landing on low-20s, a breach of which opens the door … Continued

By Year-End, Fed Funds On Pace To Exceed Inflation Rate – That Should Begin To Bite

posted in: Credit, Economy | 0

If the Fed moves in September and December, the fed funds rate will be in excess of core inflation.  In a leveraged economy, that should begin to bite.  The FOMC dot plot expects three more hikes next year.  This is … Continued

M2 Growth Deceleration Plus Recent Backup In Rates No Recipe For Overheating

posted in: Credit, Economy, Technicals | 0

“…the details of the tax legislation suggested that its effects on consumer and business spending – while still uncertain – might be a bit greater in the near term than they had previously thought.  Al­though several saw increased upside risks … Continued