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Many were already nervous sitting on a long bull streak and when there was some indication of wage growth the speculation about inflation started (and with central banks sitting on record balance sheets there is little they can do).
I like to know where this Wage Growth is? because i havent gotten a raise, but my bills have.. Kill the inflation period.. thats the lion in the room.
I like to know where this Wage Growth is? because i havent gotten a raise, but my bills have.. Kill the inflation period.. thats the lion in the room.
From CNN Money... 'Wages were up 2.9% compared with a year earlier, the best pace since June 2009. Wage growth has been the last major measure to make meaningful progress since the end of the Great Recession.'
This is from FED data but their explanation is too long winded to post.
From CNN Money... 'Wages were up 2.9% compared with a year earlier, the best pace since June 2009. Wage growth has been the last major measure to make meaningful progress since the end of the Great Recession.'
This is from FED data but their explanation is too long winded to post.
And ~2% growth is considered near-stagnant, across a historical perspective. Especially as all other indicators have been steadily rising - some spectacularly - for almost ten years. Unemployment is 40% of peak. The market has blown through K after K. But wages have only crept up a little across that span, driven more by legislative increases in minimum wage than employer largesse.
So CNN can call it the best pace, etc., but wages are still far behind all other economic growth. Which is of course why it was so imperative to cut top tax levels.
And ~2% growth is considered near-stagnant, across a historical perspective. Especially as all other indicators have been steadily rising - some spectacularly - for almost ten years. Unemployment is 40% of peak. The market has blown through K after K. But wages have only crept up a little across that span, driven more by legislative increases in minimum wage than employer largesse.
So CNN can call it the best pace, etc., but wages are still far behind all other economic growth. Which is of course why it was so imperative to cut top tax levels.
think they are only gauging the Public sectors as they intend to keep up with inflation and payroll increases. Because the private sector is very very stagnant as you indicated.
Of course all the sabre rattling and name-calling Trump has been doing at N. Korea trying to start a nuclear war couldn't POSSIBLY have ANYTHING to do with it.
I'm wondering what you all think the market is reacting to? It's not like there was any bad economic news lately... in fact the latest round of economic news seemed decent - 200k job growth and 2.6% gdp for the 4th quarter... which seemed perfectly in line with with economic numbers coming out from 2015 to today.
It's all good economic news:
Low unemployment, wages rising, 200,000 jobs added..... it's all good, so a lot of people see how interest rates could rise and inflation could ensue. Probably will, in fact.
And having made a bunch of money over the last year, they are bailing, knowing that they will be able to nail down a low-risk decent return in coming months.
Sometimes good news is bad for the market, and this is one of those times.
Market takes the stairway up and the elevator down.
I'm wondering what you all think the market is reacting to? It's not like there was any bad economic news lately... in fact the latest round of economic news seemed decent - 200k job growth and 2.6% gdp for the 4th quarter... which seemed perfectly in line with with economic numbers coming out from 2015 to today.
I'm wondering what you all think the market is reacting to? It's not like there was any bad economic news lately... in fact the latest round of economic news seemed decent - 200k job growth and 2.6% gdp for the 4th quarter... which seemed perfectly in line with with economic numbers coming out from 2015 to today.
People, myself included, were nervous about how much the market had risen and the economy had not matched that stock growth. So when signs of inflation popped up, it spooked everyone. I pulled a huge portion of my investments out of the market a week ago and getting back in tomorrow.
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