One concern I’ve had is about inflation coming with all of the stimulus. Well, here’s core CPI the last 2 decades.
The last two months have been the highest in the series. Of course the prior 3 months were the lowest.
Year-over-Year core inflation as already back to 1.7%. The question is what happens from here. Does the rise stop now that the stimulus has been rolled back?
One of the amazing things the last couple of years as been the run in large tech names. The question is: will that run stick? As I mentioned on a previous post they can’t outperform forever.
Another way to look at the current environment is the ratio of the NASDAQ index to NYSE. Here is the ratio over time:
I’m not sure I need to add a lot of commentary to this graph, but this is the largest this ratio has ever been. I think some of this is permanent, but some of it is probably … temporary.