#Latent inflation... When will the invisible - materialise?...

#Latent inflation...

When will the invisible - materialise?

Perhaps not soon:

http://blogs.wsj.com/moneybeat/2015/03/23/fed-gives-markets-a-boost-but-concerns-persist/

"Analysts forecast earnings gains of just 1.3% for S&P 500 companies overall this year, down from an 8.1% expectation as recently as Jan. 1, according to Thomson Reuters I/B/E/S. Energy companies are the big culprits. Analysts expect their earnings to decline more than 50%; more twice as big a decline as expected Jan. 1. But the damage is widespread. Technology and materials concerns rely on sales abroad and analysts expect their earnings to rise by only half as much as they did Jan. 1. Expectations for industrial-company earnings gains are down more than one-third."

Generally the CEO's tool box includes,

1. Using some of the profit that has been achieved (thanks a lot to the Fed's low interest rate measures and QE), to invest in both evolutionary and innovatory evolution of their products and workers. Instead the companies are going on a buy back and dividend craze:

http://blogs.wsj.com/cfo/2015/03/23/record-year-for-sp-500-dividends-buybacks-combined-sp/

Just as their profits plummet...

2. After profits plummet = hiring freeze
3. After hiring freeze = job cuts

And where will we go from there? Inflation according to Dallas?