Some Thoughts on the Macro Picture for 2018

The "everything bubble" is a meme that is alive and well. The price of everything is going up. The price of stocks, bonds, real estate, Cryptos, food, healthcare, education, and hotels. While the price of government continues to rise at a ferocious pace, it will be hidden from us in the next year or two as the cuts in the income tax take hold. I am sure strategists and commentators will ignore the true cost of government, which is what they spend, promise to spend and the regulations that limit our choices. It is just a matter of time before energy and commodities join the party. The Federal Reserve ignores the price trends in these categories and chooses to focus on items that are falling in price, like items manufactured overseas, technology products and those items that benefit from innovations in manufacturing that control the price of consumer durables like automobiles and appliances. So they continue to feed the bubble. Where is the so-called end of Quantitative Easing?

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