Some things are always IN. Never IN one week and OUT the next. It’s very rare, but these things do happen. Of course, some things that were once IN go OUT never to return. Like late-night talk show hosts. But financial markets are different. Right?
So, what’s always IN and never OUT? INFLATION. Week after week, month after month, and year after year, inflation is always a hot topic. Especially now. With an “odd” move last week, the Fed eased interest rates even with inflation well above its target rate of 2%. Political pressure? Something they know (yeah, right)? Every week now the focus will be on inflation numbers as they are released: CPI, PPI, PCE, etc. Any time a trip to the supermarket calls, you can bet that in every aisle the word inflation will be on everyone’s mind. Almost every day an expense will carry the word inflation. Even IF prices were to drop, the words “inflation is whipped” will be muttered. INFLATION: always IN, never OUT.
Another “always IN” is, of course, politics. It’s probably the biggest topic everyone wants to go OUT. Enough already. Sadly, politics plays a huge role in financial markets, so we are doomed to have politics included in the always IN group. Unlike inflation, that is IN every week, politics is IN 24/7 (try and get some sleep). Doesn’t matter which political party, which news outlet, which social media platform, or cable TV channel—politics is always IN. Doomed forever. Democrat, Republican, Socialist, or Independent, economic policies are put in place and taken apart every four years. Doomed.
In another direction, someone who seems to be always IN: Taylor Swift… or soon, Taylor Kelce… or Travis Swift? Whatever. She is always IN and nothing on the horizon says she will ever be OUT.
Oh yeah, one HUGE thing that seems to be permanently IN with no signs of ever being last week’s news? The bull market. Hmmmmmm.
