Has Inflation Hit the High-Water Mark?
Stable gasoline prices could bring headline inflation down very soon.
It was a fascinating week as world markets reacted to the third U.S. Federal Reserve rate increase in less than 18 months. Emerging markets soared, gaining 3.9% in a single week, and Europe did about half as well, adding 2.3%. U.S. large-cap stocks pulled up the rear, with the S&P 500 adding just 0.25%.
Even bonds did better than U.S. stocks this week, adding 0.5%. This is just about the opposite of what one might have expected. However, the markets had already priced in the news, apparently, as they often do.