Let’s get the business stuff out of the way first.

Personal Consumption Expenditures (PCE) rose by 0.3%, which is about what we expected. The core rate rose as well, though it remained in line.

Personal income went up by 0.5%, but we are spending more than we make, and our credit cards and savings are feeling the pinch.

Have you been to a fast-food restaurant lately? I was a bit shocked. I am not giving companies like Nestle, Walmart, Tyson, and other food and beverage companies a pass for taking advantage of an inflationary atmosphere.

Take a look at their balance sheets. In 2023, Nestle’s profit was up by 17.3%. McDonald’s reported a 52% operating profit margin in 2023.

There is a wolf in sheep’s clothing.