The Dow Jones tumbled again on Friday, closing down 2.5% in a week that saw the historic index slump over 1000 points.
According to economists, inflation seems to be the key to this sudden shift in market direction. Reports today on wage growth confirmed what many economists have been expecting for months: inflation is back.
The Labor Department shocked Wall Street with the announcement that 200,000 new jobs were added to the U.S. economy in January. This was stronger than expected, while the unemployment rate stayed at 4.1 percent — the lowest since we’ve seen since 2000!
Full employment is a blessing to every American, but it also means that inflation can only rise from here. The report revealed that average hourly wages grew almost 3% from last January.
This is the largest increase in wage costs since June 2009. Higher prices for all kinds of everyday goods and services can only follow.
GET READY NOW BEFORE INFLATION STRIKES
Have you got your battle plan together for the inflation war that is right around the corner? When inflation hits, every dollar in your retirement plan gradually shrinks over time.
Don’t stand by and watch your valuable nest egg disappear to the resurgence of inflation.