First look at M2. As of a week ago it is still coming down. In view of the fact that we do not have the GDP numbers we cannot judge the imputed inflation rate but that should be available soon. This seems to indicate that the Feds actions are working and there is a drop in the potential for inflation.
Now look at the following. This is our target portfolio. It is the first time during the current Administration that we are positive. The swing seems to be consistently on the positive side.
We are still concerned about commercial real estate and the problems of high yield bonds for the less than stable companies we have analyzed previously.
However, the set of indicators seems to say that we may be getting out of the mess thanks to the Fed.
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