Weekly Commentary by Professor Jeremy J. Siegel
Good Data Keep Stocks Higher Despite Sequester
11:30 AM EST, 3/1/2013
Lots of data in the last couple of days, most of it good. This morning the euro has fallen below !1.30. As those following this commentary know, I have long said the euro is too high and must come down. The dreadful state of the European economy is weighing on the currency. Except more ECB rate cuts, more liquidity, and a lower euro. Around the world central banks are becoming more aggressive, yet price indexes show no inflation. This morning the core PCE deflator was unchanged and is up only 1.3% year-over-year, well below the Fed’s target. Encouragingly, even oil is now backing off from recent strength, a fact that should bring gasoline down.