If you’re looking for fresh news that the risk of deflation/economic deterioration is gaining momentum, you won’t find it in today’s retail sales report for August. The advance estimates indicate a seasonally adjusted rise of 0.4% last month vs. July, the Census Bureau reported today. That’s the second monthly rise for U.S. retails sales and the highest percentage gain since March.
Daily Archives: September 14, 2010
STOCKS UP, SO IS THE MONEY SUPPLY. A CONNECTION?
September has been a good month for equities, so far. The S&P 500 jumped nearly 7% for the month through Sep. 13. For the moment, the disinflationary/deflationary scare of the summer is over. Or is it merely taking a breather? There’s no assurance that the crowd won’t turn risk averse once more. It’s all about incoming economic data…still. But looking at the latest trend in money supply figures and the slight jump in the market’s inflation expectations suggest that there’s something more in the rise in equity prices than rank speculation.