STOCK MARKET WATCH -- Monday, 1 August 2022

[bucolic_frolic]

1. In my twisted mind markets are roaring because inflation is being allowed to run

Stocks are being revalued - reinflated - by all the money juicing through the investment world, which is totally distinct from the ordinary working man's economy. There is no idea at all that Powell's Fed will choke off inflation Volcker-style. If there were, the markets would be half what they are now. No, it's clear the Fed, unlike the Volcker-era Fed, has no arrows in its quiver. They will just raise rates and see what happens. A year from now they'll be touting their success because inflation is down to 6.5%, and they'll be easing again to create jobs and support markets.

Hedge funds and private equity run our economy. Publicly traded equities are so passe. Only a sucker would hitch their wagon to investments highly regulated by the SEC - which is why that is the total array of investment options available to working people - 401K and what index fund would you like?