Inflation? Who Cares?

Physician's Money DigestSeptember30 2004
Volume 11
Issue 18

Given rosier economic numbers andevidence that the job market is pickingup, Wall Street ought to be celebrating.Instead, the market has been locked in atrading range for the past few monthsand doesn't look like it wants to breakout. What's causing the doldrums, somemarket watchers say, are fears thatinflation is making a comeback. AlanGreenspan has also put the nation oninflation watch, as the Federal Reserverecently raised the federal funds rate aquarter point and has promised "measured"increases in the future. Someexperts think the market outlookshould be a lot rosier than Wall Street ispainting it, however. The return ofinflation confirms that the economy ishealthier, they argue, and should alsomean that many companies will see areturn of some pricing power, whichwill boost earnings.

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