After a stock market crash investors are most concerned about inflation and interest rates

Last week was the best week of US stock performance over the years, about half the gains of the market correction earlier this month due to the decline of the stock market but also found another wall of worry to overcome。  Friday, the S & P 500 Index closed at 2732 remain.22:00 achieved week 4.3% increase, 5% lower than the record high in January had a record of。The Dow Jones Industrial Average also rebounded half of the peak-valley ratio, and the two have since the beginning of the index is up about 2%。  After the latest six days in a row on Friday gained momentum only "13 Russians accused of prejudice was the 2016 US election," the news release has been interrupted。  On Monday the US financial markets will be closed due to the Presidents Day holiday, investors will have the opportunity to reflect on the performance of the market situation in the three-day holiday。UBS head of asset allocation Erin Browne wrote in a note to clients, the recent slump for the first time in two years the market correction of 10%, mainly by technical factors rather than fundamentals driving。"In the past few weeks to remind investors, when combined with the consensus position, positions crowded and technological factors of power are dangerous。Importantly, we do not believe that strong global economic growth and huge profits background will suddenly evaporate gone。"Indeed, the fourth quarter profit quarter performance has been very significant。According to financial information provider FactSet's John Butters, senior profits of the approximately 400 S & P 500 companies have released fourth quarter earnings, which posted 75% profit than-expected results, announced the sale of 78% volume-than-expected results。  "The stock market is completely restored confidence in the economy and profits." The answer to this question will be clear in the next few weeks。The second largest US life insurer Prudential Financial division chief Klaus Quincy White said that so far, although investors are still not completely out of danger, but a V-shaped recovery curve has been fixed。"Seasonal investors will pay close attention to retest lows。Now we have a new wall of worry to overcome, and that is the inflation rate。To overcome the negative factors in the process of "wall of worry was used to describe the tendency of the stock market rising。This is a reverse concept, investors are worried that once the composition of the wall of worry anxiety in place, the stock market may stall development。Interestingly, the inflation rate and rising borrowing costs rise fears, whether rational or irrational, will first lead to the stock market crash。  Klaus White said: "We are no longer just all the good, the bad news is good news for the environment。Now, the good news is seen as bad news。Market trying to figure out profit growth rate to keep pace with inflation growth rate。"Investors have reason to worry about inflation, even though it has been suppressed for many years。The latest data show that the trend in the inflation rate below the under and the Fed's 2% target。  Higher inflation and higher borrowing costs next enable firms and households 乱成一锅粥。The withdrawal of high debt portfolio will almost certainly result in heavy losses for stocks or junk bonds and other risky assets。  Although the increased volatility in the international stock markets posted positive returns, but higher inflation would reduce the real return on stocks and bonds decline or make。Klaus White pointed out that in this global variable is how the Fed's decision-making in the inflation rate and rising environment。"The present situation is that the Fed by selling bonds actively trying to reduce the size of the balance sheet, but at the same time the government needs to borrow more than a trillion dollars of funds to cover the deficit。Yields will have to rise。The market will adjust to higher yields and higher inflation, as long as economic stability and expansion of businesses will be able to conduct price increases to consumers。"This week, investors will be able to get clues about the idea and the Fed Minutes from the January meeting, it is learned that this was the last meeting of the Fed's policy meeting chaired by Jean Nate Yellen。  In swearing February 13, the new master Xijieluomi Powell's comments imply that the Fed will continue to increase as planned。At the same time, other policymakers have played down the importance of market volatility。  In addition to the Fed minutes Wednesday 14:00 EST release of the United States, there are many heavy economic data release。For example, the value and existing home sales data preview will be released on Wednesday, the number of weeks jobless claims data will be released on Thursday。  Digital Fed officials scheduled to speak。Philadelphia Fed President Patrick Harker and Minneapolis Fed President Neil Cash card is scheduled to speak Wednesday。New York Fed President Dudley Xiweilianmu speech is scheduled for Thursday, Cleveland Fed President Xiluolita Mestre and San Francisco Fed President John Williams has been scheduled for Friday speech。(Original title: after a stock market crash investors are most concerned about inflation and interest rates) (Editor: DF318)