As a follow up to ISM the other day, I wanted to pass along this chart, showing stagnant growth, but a big spike in prices paid:
via Jake
ISM Prices (May 2008)
June 5, 2008 9:00am by Barry Ritholtz
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
What's been said:
Discussions found on the web:Posted Under
Previous Post
Moody’s to Cut Ambac, MBIA AAA RatingNext Post
TheStreet.com Goes Flash Video
I like Steve Pearlstein of the Washington Post…he writes that the mirage economy is fading…this chart lends credence, along with the drill down on durable goods and just about every other trumped up number we get now.
Inflation-induced demand is the mirage.
When the BLS releases productivity numbers making it appear we are ever so much more productive, remember, they use the CPI to discount their dollars. It’s all a mirage.
In response to rising prices in Europe, ECB president Trichet raised the possibility that the ECB’s 4.00 percent policy rate may actually be hiked to 4.25% at the July meeting to squelch euzozone inflation.
As one would expect, European stocks sold off on the dismal news of a rate hike. But U.S. stocks are unruffled by the prospect.
Maybe they should be. Hiking rates during a global liquidity crunch which is not over yet, could prove to be a policy error of monumental proportions. Just as one example, every Federal Reserve attempt at hiking rates during the 1930s produced loud cracking noises, followed by avalanches of economic crumbling.