This is very good news from an inflation standpoint. I think it helps bonds because low inflation is good for bonds. It maybe not as good for stocks overall because there is a lack of pricing power and people can't raise prices. It will make the Fed less likely to raise rates.
More Quotes from Robert MacIntosh:
The economic growth rate will be so weak, combined with extremely good inflation numbers, that I just don't see them doing anything in 2002.Robert MacIntosh
I don't see how they can raise rates, given what's happening here. They need to see job creation or inflation, and right now we're not seeing much of either.
Robert MacIntosh
They wanted to give themselves some flexibility, which they didn't have with that language.
Robert MacIntosh
It's probably not good for bonds if the Fed is still raising rates on the short end and people are uncomfortable with the yield curve.
Robert MacIntosh
Based on these numbers, the markets should rise, but you have Greenspan and the CPI hanging over us, ... The PPI measures only about 20 percent of the U.S. economy, and the CPI is a far more comprehensive number.
Robert MacIntosh
Retail sales were down, which isn't a surprise, but they were down more than might have been the case, but January was revised up so you have to average those two months because we had all sorts of weather issues. If you average the two of them we are doing fine. People are still willing to spend.
Robert MacIntosh
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