Stocks in the red as market optimism wanes

by Darren

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Indeed the investors are skittish again today. The market is in the red as people weight their options. Today people are worred about wage rate inflation. In a growing sign that things are more expensive than ever:

The Labor Department report that wages rose at an annual rate of 4.9 percent in the second quarter, above the 4.2 percent the agency estimated, was an unpleasant surprise for a market that had reached three-month highs on hopes of stable rates

Inflation of any kind is the top worry for reluctant investors right now. Net margins will feel the pressure as raw materials and wages become ever more expensive. The downward pressure on margins will eventually push stocks down to extremely low levels.

What can drive growth right now? It has to be something with really good news built in. Maybe flat-panel-televisions” or other products that have caught the eye of the consumer. But the question remains: can the afford to buy it?

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