Inflation.

The president of the Federal Reserve Bank of Dallas made some hawkish comments regarding inflation yesterday and it sent the market south despite a big drop in oil prices.   It seems any hopes of the Fed slowing down on the interest rate hikes will have to be put on hold.  

I'm hoping this is the beginning of the last push down I've been talking about ad nauseam.  Like 1994, we could see much volatility ahead which could culminate to a final bottom that should shake things up quite a bit for the "weak" bulls.


                      Charts provided courtesy of www.decisionpoint.com

I've talked about 1994 enough and you may be wondering why it is worthy of all of this discussion.  In 1994 this last push down led to something pretty terrific.  Here is what followed:


                      Charts provided courtesy of www.decisionpoint.com

And that was just the beginning as 1996 to 1999 were as good or better.  So let's get this sell off over with so we can start making some real money again.

The I fund managed a nice again yesterday and is now up about 9% for the year.  I have been saying that a rising dollar will hurt the I fund.  I compared being in the I fund when the dollar is rising to running in peanut butter.  Even if it goes forward, it will slow it down.  So what gives?  Was I full of hot air?  Seems that way, but the EAFE index is actually up 18.8% this year!  The rising dollar took away half the gains.  Can you imagine what the result could have been if the dollar was dropping?

That's all for today.  Currently 100% G fund.  Thanks for reading. 

Don't forget to check out what RevShark is saying.  His commentary is also updated daily.