Tuesday, June 17, 2008

Financials-Have we hit bottom (redux)?

Well, get ready for inflation, people, especially overseas. Tough talk from the Fed and the ECB this week are helping to fuel a dollar rally, but the Fed is not going to be able to raise rates this year without putting the kibosh on growth. Rock/Fed/Hard Place. So, get used to $4.00 gas and $12 corn flakes.

What does that mean for the markets?

It's not a pretty picture. High inflation and slowing relative earnings growth mean that equity markets in the U.S. are gonna suck for a while.

Picks of the week:

MON, BBT, AVX.

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