Transcript:
Tom Vaughan:
Everybody, welcome to Wednesday, the S&P 500 was point 3%. Today, and it was a little bit surprising because the news for the day was very high inflation number of 7% on the CPI year over year, so this December that just passed versus the December of 2020. And so that’s a big number, 40 years we’ve had, you know, that’s the highest we’ve had. And the market still went up, I think the market was calmed a bit by what the Federal Reserve Chairman said yesterday about, you know, how they’re going to fight inflation, I also feel, if you really look is to be my projection on what might happen with inflation, I wouldn’t be surprised to see it go up a little bit in January, February, and then maybe, maybe start back down from that point, you know, March and all the way through, you know, the fall. And mainly because there’s a whole bunch of things happening, all of this money that was pushed out early last year in stimulus bills to try to help with the pandemic probably starts to wear off here, at some point in time, the Federal Reserve will be done purchasing their bonds in March, start raising rates in March.
And then I think the supply chain throughout the year gets better and better. And so all of those things should come together to kind of bring inflation down quite a bit at some point in time. And so, you know, the trick will be how much the Federal Reserve does or doesn’t do, do they overdo it or under do it, you know, that kind of thing. So we’ll have to see how that plays out. But I think that, you know, all together things could be setting up fairly well for the, you know, for the stock market, at least in terms of how inflation goes and what the Federal Reserve is going to be doing about it. So, anyway, that’s what happened today. Not a bad day, pretty good motion and a lot of the different things that that I watch and look forward to see what’s gonna happen tomorrow. Thank you.