Hope you are all doing well. On the heels of two sharp weekly declines, stocks surged on Monday and Tuesday en route to recording weekly gains of around 4%. For the S&P 500, it was the strongest weekly result in 10 months. Author Anne Rice passed away yesterday. I have broken down this week’s news using quotes from perhaps her most popular novel Interview With The Vampire.
The world changes, we do not, therein lies the irony.— Author Anne Rice -Interview with a Vampire
Americans keep spending as demand remains constant despite an unprecedented spike in prices. The annual inflation rate climbed in November to the highest level since 1982, marking the sixth month in a row in which the rate topped 5.0%. The government reported on Friday that the Consumer Price Index (CPI) rose to 6.9%. Excluding the often-volatile categories of food and energy, the inflation rate was 4.9%, the highest since 1991. The inflation reading likely underscores the need for the Fed to take action and accelerating the taper process is a concrete step in battling inflation. With the labor market strong the Fed can focus squarely on fighting inflation.
Dark angels not confined to the stinking limits.— Author Anne Rice -Interview with a Vampire
The only thing stronger than a vampire’s thirst for blood is the unquenchable desire of politicians to spend. A week after reaching a short-term agreement to avoid a government shutdown, lawmakers approved a measure that allows the Senate to raise the nation’s debt ceiling through a simple majority vote. That measure was expected to lead to separate votes in the House and Senate to raise the debt ceiling before December 15, avoiding a potential default of the government’s debt obligations.
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