Tuesday, November 18, 2008

Stat of the Day: Biggest PPI Drop on Record

Today we got yet another record: the largest PPI drop ever. At a drop of 2.8%, Wholesale prices are dropping at a dramatic rate. These reduced costs should help most businesses save money and increase profits leading to additional spending. The previous low was Oct of 2001 yet another period that was the near the lows of a bear market.

The market continues to match or set records that were last reached at market lows whether Yield Curves, Valuations, or Costs. These indicators alone never tell us when the bottom has been reached, but they all add up to being much closer to the bottom then the top.




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