Futures are down this morning after markets took a pause on Tuesday after running up for several days. During the overnight session futures were down initially then powered higher into positive territory and then went lower again. So quite a bit of volatility. CPI came in very hot and much higher than expected. Inflation is here to stay for now and it may force the Fed to accelerate their tapering efforts and eventually raise rates. Bond rates are puzzling many since they are communicating a slowing in the economy and that may be due to the pressures that inflation may take on the economy. Regardless of what the bond market is communicating, energy costs this winter will be at crisis levels for many families who may not be able to heat their homes. This is just not a rosy picture for the markets. I don’t think that the market can continue to shrug off all of the economic consequences and down may be the direction for now. But, the market has confounded all of us and it may continue to go up.
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