2. Wage Increases Unsupported by Productivity

Today, the song "Rich Men North of Richmond" underscores the national feeling of a great loss of hope and opportunity – the two pillars that have fueled the free market system in the United States since our country's inception. The political class should pay attention!

The recent UPS settlement with the Teamsters raised their salaries, along with benefits, to $170,000 a year. Such upward negotiated wage pressures, resulting from coercion rather than market demand, will ensure a continuance of substandard labor productivity that we are experiencing and will ensure elevated inflation going forward. This also raises serious questions about why young adults should even go to college.

I strongly advise that investors wait until September 13 before considering putting new money into the market. The August Consumer Price Index (CPI) is at risk of coming in higher than expected. However, the core Personal Consumption Expenditures (PCE) that the Fed watches will likely remain as expected on August 30.

Finally, contrary to what the street expects, there is a 90% chance that the Fed should increase the Fed Funds rate on September 20, 2023.

Have a blessed week!

By Tony Christ