The markets woke up after the Thanksgiving slumber and realized that “Oh now I remember, interest rates are going to continue going up”. Wholesale prices, evidenced by today’s “Producer Price Index”, came in hotter than expected, both in the month to month (+.03%) increase and year-over-year increase of (+7.4%.) giving credence to market performance earlier this week. The thinking is, the Fed will have to do more rate hiking because inflation remains unabated. So far today, the markets are figuring the worries are priced in, -the major indexes are down only slightly.
The views stated in this piece are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities. Due to volatility within the markets, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
Markets: "Now I remember!"
