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Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" :: The Market Oracle ::


In many global regions, economies are flourishing.
For example, here are two headlines about the U.S.:
What America s Startup Boom Could Mean For The Economy (npr.com, June 29)
Inflation Rose in June as Economic Recovery Continues (WSJ, July 13)
The goings-on in the United Kingdom provide another example. Employers in the UK are hiring people at the highest rate in more than six years. Plus, business and consumer spending are climbing swiftly at the fastest clip in a quarter of a century.
So, it wasn t surprising to see this June 18 CNBC headline:
Morgan Stanley picks the global stocks set to ride Europe s expected boom ....

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True Or False: Inflation Stock Market Sell-off?


The topic of inflation has been grabbing a lot of financial headlines.
Indeed, financial journalists have blamed inflation for recent stock market sell-offs.
On May 11, when the Dow Industrials closed 475 points lower, an intraday headline said (Reuters):
Wall Street drops on inflation jitters, led by tech stocks
The next day, on March 12, the sell-off persisted. Another financial news source noted (CNBC):
Dow tumbles 680 points in worst decline since January as hot inflation reading spooks investors
So, at least two news organizations agree that inflation was the culprit behind the sell-offs.
However, investors who follow the news closely may have done a little head scratching. Meaning at the start of the same week (May 10) the Dow climbed to a record high. So, were inflation worries absent on that day? Not according to this May 10 headline (CNBC): ....

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