SPDR S&P 500 (SPY)

[gdl]

Deflation is always a positive until JOBS and WAGES are affected. Here in the US we recently had the biggest surge in wages and spending even as the jobs hiring numbers got chopped.

If wages outpace inflation and jobs are plentiful there in no downside. The FED had real reasons to raise rates sooner than later. With the drag from overseas the question remains will it slow us down also.

Deflation due to competitive cost reduction and higher supply for commodities has certainly helped us. When companies start firing and reducing wages at that time we would have a real problem.
We are just not seeing that yet.

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http://www.cnbc.com/2015/10/20/lower-revenue-projections-pressure-earnings-and-margins.html

Regarding my current views on the market here is an article that best explains my concerns.