The Fed's announcement that the taper would be a more quiet retreat instead of a sudden one was celebrated on Wall Street, and it pushed the DJIA and other indices to higher highs. But so far, the NYSE's A-D Line has not followed suit.
Too often as investors we become wed to our individual investments or narratives, and refuse to acknowledge major trends taking shape before our very eyes. Often this results in refusing to sell investments that performed well in the past, while neglecting to take advantage of current or future investment opportunities.
Since the 1994 North American Free Trade Agreement, a new division of labor in the auto sector developed. By 2012, about 40% of the jobs in the auto sector are in Mexico and the trend does not appear to be exhausted.
The Federal Reserve announced it was reducing the long-term assets it buys by $10 bln a month, evenly divided between mortgage backed securities and Treasuries.
Let's do some analysis of the Consumer Price Index, the best known measure of inflation. The Bureau of Labor Statistics (BLS) divides all expenditures into eight categories and assigns a relative size to each.