Mixed Messages

Today the Wall Street Journal reported the fed believes (how's that for second derivative thinking) that the rising interest rates are a function of improvement of the economy. I'm all for that if it's true.

However the falling dollar and rising gold prices indicate fewer "green shoots" and more a reluctance to own dollars, lend to the US at such low returns and a belief that inflation is lurking out there. The green shoot and wilting dollar aren't mutually exclusive, but prompt caution.

John Barnyak
President
www.stonehouseasset.com