Stagwhat?

Wachovia did an article about IMS showing slower economic growth and lower prices. Wachovia asks the same question I have asked; what stagflation?

When investors are confused, they look for explanations and find them even if not supported by the facts. The facts are that strong worldwide growth caused commodity prices to rise. However, it is also a fact that commodities have recently been rolling over. Wage inflation is still very moderate.

Health care benefit costs have risen too fast but productivity is at a three year average rate of 4%!!! Believe me, we are not going to experience stagflation and historically high productivity at the same time.

The bottom line is to stop worrying, buy stocks and wait for the death by 1000 do nothing drops to end.