Three Great Values in the Essentials. By the time you read this, the Fed's February meeting will be history, but the anxiety over interest rates and inflation will continue, at least for a while. Fears may even intensify in the short run. New concerns about excess money growth in last year's final quarter are being piled on top of the Fed's long-running core theory about growth leading eventually to inflation.
Perceptions drive markets in the short run, but reality wins out in the long run.
In reality there is no inflation problem. In the minds of many economists, Wall Street analysts and fund managers however there is a potentially nasty interest rate and inflation problem. This perception has been twisting and turning the stock market this year. It is likely to continue doing so for a while longer. Then watch out.