Stocks investing for dummies pdf full#

Indeed, a regional slowing in South Texas makes sense given that HoustonвЂ™s economy is largely based on oil, chemicals, and shipping. But on this trip, I-45 was noticeably slower than on previous trips and Houston seemed sluggish. First, the I-45 corridor is usually a very busy road and Houston is usually a vibrant city. While those numbers paint an inflationary picture, what I saw on my recent trip to Galveston was of concern. In the FedвЂ™s world, there are numbers and statistics such as CPI and the central bankвЂ™s favorite inflation gauge the Personal Consumption Expenditures gauge (PCE), which recently rose at the fastest rate since 1992 (6.6%) when food and energy prices are included. So, yes, there is too much money chasing too few goods.

Stocks investing for dummies pdf full#

While both inflationary periods were due to increases in money supply, the current inflation is lingering because the factories that went off-line due to COVID have not returned to full operations. In contrast, todayвЂ™s inflation has resulted from the FedвЂ™s quantitative easing to fight the effects of the COVID pandemic and economic shutdowns. Combined with price controls, we were treated to stagflation. This increased money supply and created an inflationary spiral. Specifically, the 1970s inflation resulted from the fact that the Nixon administration removed the U.S. The problem is that this bout of inflation is different from the inflation in the 1970s. Moreover, under normal circumstances, I would agree with the Fed raising rates aggressively to quell inflation, perhaps even as aggressively as the central bank did in the Volcker era, during the 1970s. In fact in some places, itвЂ™s likely to be running well ahead of the 8.5% increase in the March Consumer Price Index (CPI) and other frequently cited measures. ItвЂ™s obvious to anyone who buys groceries or fills up their gas tank that inflation is a current problem. But one important fact was omitted from that list: the Federal Reserve is raising interest rates just as the economy is rolling over. Among the key reasons cited in the mainstream were the following:Д¬ertainly, those are valid contributors to a slowing economy. gross domestic product (GDP) growth had вЂњunexpectedlyвЂќ fallen by 1.4% against analyst expectations of 1%. Given what I saw, I wonder if anyone at the Federal Reserve actually steps out into the real world. So, last week, I drove from Dallas to Galveston.

I recently decided to see what the world was doing beyond my usual haunts. In some parts of Texas, where the economy has been resilient, there are now emerging signs that confirm this dynamic. The Federal Reserve is raising interest rates even as there is evidence of significant slowing in the economy.