Two Pounds of Coffee

Two Pounds of Coffee Last week’s retreat of the Dow unnerved investors and the business community. How the market performs this week is going to be important. Yesterday’s halt to the decline was a good sign that it may stabilize, at least for now. However, the decline highlights the tenuous nature of this recovery. And for the past couple of weeks the stock market has kept its eye on the sputtering US economy, and increasingly on the specter of inflation. Apparently some investors see a growing risk that prices will keep rising, even if the economy slows. A scan of recent business press indicates a general consensus that the current rise in inflation has been driven in part by the surge in commodity prices. Last weekend I did my part in the evaluation and noted that the price of a two-pound can of Hills Brothers coffee is almost twice what I paid for it last year at this time. Keep an eye on the markets over the next week or two. Let’s hope it’s not signaling the dreaded double-dip.