Steve Jobs made this announcement at a MacWorld convention and was roundly booed. The Apple board has added a few members as well, including our man Larry Ellison. A glance at my Investor's Business Daily shows that the oil services sector has moved back into the top spot for relative strength. Tidewater continues to trade near it's highs and sports a relative strength of 99. To wrap things up today I want to confess to being more than a bit confused on the 'flation picture.
Inflation equals rising interest rates.
That's bad for bonds and ultimately is bad for stocks, as higher bond yields create competition for stocks, and because business has to pay more for the money it takes to fund expansion and whatnot. In this weekend's St. Louis Post-Dispatch there was an article on the threat of inflation, particularly in the service sector. It was enough to make me consider the inflation threat a reality. Imagine my confusion then when I read a very persuasive argument for deflation in last week's Barron's and also in a series of articles, including one today, in Investor's Business Daily . In a deflationary environment prices actually decline.