Tuesday, February 26, 2008

Inflation Rises

It appears that we’re heading into a down cycle. 

Consumer confidence weakened significantly as Americans worry about less-favorable business conditions and job prospects. The New York-based Conference Board says in a report released on Tuesday that its Consumer Confidence Index plunged in February to 75.0 from a revised 87.3 in January.

The reading — the lowest since the index registered 64.8 in February 2003 — is far below the 83.0 analysts expected.

[...]

Inflation at the wholesale level soared in January, pushed higher by rising costs for food, energy and medicine. The monthly increase carried the annual inflation rate to its fastest jump in a quarter century.

The Labor Department said Tuesday that wholesale prices rose 1 percent last month, more than double the 0.4 percent increase that economists had been expecting.

As a young investor, I welcome it.  Down cycles are my time to buy low.  Of course, I’ll need a few good up cycles at some point grin

(7) Comments
Posted by Owen at 2337 hrs
Off-Duty

  1. Enjoy!

    http://www.atimes.com/atimes/Global_Economy/JB23Dj04.html

    Posted by .(JavaScript must be enabled to view this email address) on February 27, 2008 at 0111 hrs


  2. The truly savvy investor plays both ends of the market.  When the economy is booming, gold is often fairly low.  So, I’ll buy gold coin.  Then when the economy tanks, that gold is way up.  I can then either sell it and buy a blue chip stock at a bargain price, or just hold until the next down cycle and buy more gold.  Works like a charm and is far less risky than playing options or covered calls.

    Posted by .(JavaScript must be enabled to view this email address) on February 27, 2008 at 0558 hrs


  3. A down cycle with rising inflation… that’s not good at all.

    Posted by .(JavaScript must be enabled to view this email address) on February 27, 2008 at 0731 hrs


  4. That’s all right.  Rest easy.  The next President (a Dem) will confiscate all the oil company profits and redistribute them to those in need.  That will make things better.

    Posted by .(JavaScript must be enabled to view this email address) on February 27, 2008 at 2204 hrs


  5. The economy is really not going to give a damn who the next president is.

    There really aren’t any policy solutions out there.

    But please continue to try to politicize this, I can always use a good laugh.

    Posted by .(JavaScript must be enabled to view this email address) on February 27, 2008 at 2237 hrs


  6. This is so sad for Americans. We’ve had the best and now we are going quite downhill economy wise. This is why my biggest consideration for the next president is one who will help improve our economy again.

    Posted by Ajit on February 28, 2008 at 0843 hrs


  7. “As a young investor, I welcome it.  Down cycles are my time to buy low.”

    Exactly my strategy. Even a piker investor like me can get real deals on great stocks of companies with tons of infrastructure. This is a strategy outlined by Red Obama when he said, “...and Wall Street will become Wal-Mart.” Hah - I couldn’t resist!

    Posted by .(JavaScript must be enabled to view this email address) on February 28, 2008 at 0913 hrs


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