Douglas Carr, E21
Going back the last fifteen years, 12-month inflation statistics such as the Personal Consumption Expenditures Price Index and the Consumer Price Index have exhibited a pattern of unusually high figures in January and February of each year, followed by lower statistics for the balance of the year, even after seasonal adjustment by the U.S. government statistical agencies. The seasonal patterns are most evident in the core inflation figures that exclude food and energy prices, as commodity-oriented prices do not exhibit such seasonal tendencies. Read more here...
Desmond Lachman | The New York Times
It’s unlikely anyone will take credit for the current global market free fall, which is clearly not just a correction but an overdue unwinding of years of excess. Whether the damage remains limited to markets or spills over into the general economy remains to be seen, but we could well be on the verge of another global financial crisis. It’s no surprise that, sooner or later, the global financial markets would unwind as violently as they now seem to be doing, considering how far they were allowed to get out of line with their underlying values.
BY DAVID P. GOLDMAN
Market fears of rising bond yields don’t tell the whole story
Robert Shiller presents evidence that US stock markets may not maintain their high valuations for much longer.
Dambisa Moyo thinks the recent fall in equity prices is a harbinger of a broader economic reckoning to come.
quoting Michael Spence via Bloomberg
The global stocks roller-coaster of recent days reminded me of three lessons I learned many years ago as an investor in emerging markets. If well understood and applied, these precepts can turn unsettling volatility surges into longer-term opportunities.