September 11 Update

25th anniversary of the terrorist attacks in NYC, Washinton DC and Pennsylvania. 

CPI for August was +3.4% year-over-year and 0.4% month-over-month. 

This puts pressure on the Fed to raise the overnight interest rate next week. 

The U.S. Treasury is buying the long dated bonds

Many cross currents.

Is the current market a bubble.  Comparison to previous bubbles.  Not every statistic but enough to cause worry.  No guarantee it will pop – the economy and earning could grow into these ratios but that is a very difficult scenario.  

“But the market always comes back”.  Yes, but not always right away.  The Nasdaq did not recover from the Dot Com bubble for 15 years.  It took 25 years for the Dow to recover from the 1929 crash.  Japan’s Nikkei 225 plunged 80% in following the 1990 bubble.  It took 34 years to regain the levels of 1990. 

Can your financial plan withstand something like this?