What’s Really Driving This Stock Market Higher

Oct22

What’s Really Driving This Stock Market Higher

Posted by Mark Pettinga

The Dow Jones Industrial Average marked the 30th anniversary of its 508-point plunge on Black Monday, Oct. 19, 1987, by closing above the 23,000 mark. For the week, the blue-chip average added 456.91 points, an even 2%, to end at 23,328.63.

The Standard & Poor’s … Read More »

 
 
Oct16

Who Says This Stock Market Is Overpriced?

Posted by Mark Pettinga

As the 30th anniversary of the 1987 stock market crash neared, Robert Shiller, the Nobel laureate and Yale University economist, mused on why today’s seemingly overpriced market continues to sleepwalk higher. The cyclically adjusted price/earnings, or CAPE, ratio that he and John Campbell devised in … Read More »

 
 
Oct02

The Dow Notches a Strong September

Posted by Mark Pettinga

Small-cap stocks scored an impressive gain last week, with the Russell 2000 Index climbing 2.76% to a record high, amid a strong overall showing for equities.

The Standard & Poor’s 500 index and Nasdaq Composite Index reached new peaks, as well. The Dow Jones Industrial … Read More »

 
 
Sep11

The Trouble With the Fed’s Inflation Target

Posted by Mark Pettinga

The idea of an inflation target was established in January 2012, in the aftermath of the 2008-09 financial and economic crisis. The Fed said then that an explicit goal would help promote the central bank’s dual mandate: low unemployment consistent with stable prices. And in … Read More »

 
 
Jul24

The Baffling Mystery of Inflation Deflation

Posted by Mark Pettinga

The core consumer price index eked out a year-over-year increase of just 1.7% in June, the slowest in two years. Stripping out shelter costs, core inflation grew just 0.6%, the most sluggish rate since 2004. Personal-consumption expenditures are growing at a 1.4% pace, shy of … Read More »