Apple Tops $3 Trillion Despite Distress Elsewhere and Banks Remain Troubled

At this point, we are moving into the second half of a year filled with questions and uncertainty. With that in mind this could be a good time to review some of the macro factors which are likely to affect the markets and the economy in general. The latest report from the Bureau of Labor Statistics says that inflation in June dropped to its lowest level in over two years, rising only 3% from a year ago and only 0.2% when compared to May. Another BLS report notes that wages have grown faster than inflation for the last four months and rising 0.4% from May to June, double the rate of inflation.

However, the problems in the banking world which led to three of the biggest bank failures in US history earlier this year remain unresolved. Interest rates are even higher now than they were when the banking crisis started at the beginning of the year and many large banks still have millions in unrealized losses on their books from loans that will never be repaid. And despite the rosy report from BLS, the Fed is still struggling to keep inflation in check, without tanking the economy. The same problems we have faced for the last few years are still here, but the stock markets are up, so everyone seems to be just looking the other way or burying their heads in the sand.