Inflation fears prompt selloff on Wall Street

[truthpusher]

Inflation fears prompt selloff on Wall Street
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1 hour, 40 minutes ago
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A warning from the federal Reserve that "inflation has picked up in recent months and pricing power is evident" sent stock prices tumbling Tuesday and pushed interest rates higher.

The Dow Jones industrial average fell 94.88 points to 10,470.51, the lowest level since the end of January. The Nasdaq composite index dropped 18.17 points to 1,989.34 the lowest level since early November.

As expected, the Fed raised short-term interest rates to 2.75 percent, the seventh consecutive rate increase.

"The Fed conceded that there's a bit more inflation in the near term than people were expecting to hear about," said Jack Caffrey, equities strategist at J.P. Morgan Private Bank. "And if you get short-term inflation, there's the danger of it extending into the long term, and that means higher interest rates and lower multiples for equities."

complete story: http://news.yahoo.com/news?tmpl=story&u=/sddt/20050323/lo_sddt/inflationfearspromptselloffonwallstreet

[Tandalayo_Scheisskopf]

1. And so it begins.

And it it beginning, too. The narrative has changed.

Welcome to The Early Crunch. They cannot hide it anymore.

[Prodemsouth]

2. Wait till the GM bankruptcy is announced then get ready for the big ride.

n/t

[DemoTex]

3. I pulled EVERYTHING out of the stock market in 8/2001.

As an active MD-80 captain, I was being warned every trip - all summer long - of threatened attacks. By August 2001 it was so obvious that a big hit was coming, that I pulled all of my investments out of stocks. I moved my investments into safer low-yield accounts. I am still 30% ahead of my peers who stayed in the market.

BTW: Who thinks 9/11 was a surprise attack? I was briefing my flight attendants on an elevated high-jack threat as early as July 7, 2001. When A/G John A$$croft quit flying the airlines in mid-July 2001, for security reasons, I knew a big hit was coming. Maybe that was part of why I failed a flight physical on 9/10/2001 with B/P over 170/105. I haven't flown since then.


My old, great office!

[CountAllVotes]

4. I sold today

I was planning on it anyway. Not much left in that thing called the DOW now. Sucky investments they have been and will continue to be IMO.

Best thing ... INSURED accts. like CDs, money markets accts., savings bonds, etc.

Just say NO to Wallstreet! It is going nowhere but down from what I can tell.

:kick: