Good morning, and welcome to the monkey house. Now that the deluge has stopped, we can put away our umbrellas and turn to the key topics of the day. Leading off the hit parade is inflation:
• Look Ma, No Inflation! was my sarcastic take on the nonsensical core rate (this one seemed to resonate in the MSM).
• Before the CPI data came out, I explained why Inflation is here and the Core CPI is nonsense in this Forbes’ Video. (I also managed to snap some photos of Malcomb S. Forbes’ motorcycle!)
• John Mauldin excellent smackdown on the absurd way CPI calculates Housing data in Smoothing Out Inflation. If utility costs go up, the CPI believes your renters equivalent is therefore going down — Energy inflation perversely lowers housing costs.
• While I completely disagree with James Altucher’s take, his column "Don’t Sweat Inflation Worries" does as good a job as any explaining the no inflation view. (He’s wrong, but its a good column nonetheless).
But its not all inflation — other items were worth exploring:
• The Apprenticed Investor column is back, and this week’s entry generated a lot of mail: Write This Down helps answer the question "What was I thinking when I bought that pig?"
• Slate’s Dan Gross asks "Who will fill the Fed chairman’s shoes?"
• Each week the CARNIVAL OF THE CAPITALISTS has 20 or so posts on various economic, business and market related topics. Its a good way to discover new voices on these subjects.
• Last week, I did something I almost never do: I read not one but two WSJ Op/Eds: I was shocked; Not only were they factually inaccurate and poorly researched (See Get A Clue) — they were ginormous MONEYLOSERS. My advice to investors: Read the WSJ, but stay far far away from the Op Eds.
• Lastly, I came across this rather expensive tome — The Psychology of Technical Analysis — If anyone has any feedback on it, please share it with me.