MARKET RECAP

Stocks were off slightly, down by 0.25% in the US. Outside the US, equities increased by 0.24%. Stocks sold off on Wednesday on the inflation news (see below) and on a weak 30-year treasury auction but recovered most of the loss on Thursday and Friday.

Inflation was up by 6.2% in October, that was the biggest one-year increase since 1990 and the fifth month in a row that inflation broke 5%. For the month, prices were up by 0.9%. Home prices were up by 16% in the third quarter compared to one year ago.

The Fed has been buying $120 billion in bonds each month, they have announced they will cut that amount by $15 billion a month. That means it will take eight months to put an end to the bond buying. And in the meantime, the Fed will be adding another $420 billion to its balance sheet. This, while inflation continues to accelerate. The Fed seems to be way behind the curve on this.

MARKET RECAP