What if the Federal Reserve is wrong about inflation? What if instead of heading higher- curtesy of rising labor costs, inflation heads lower- owing to excess industrial capacity and slowing worldwide economic growth?

What if the investor fears over rising interest rates and yields is wrong? What if the stock market leadership change away from growth companies because of these fears is misplaced? What does it say about the current market correction and volatility if these expectations are not met?

Worldwide economic data, anecdotal data from China, and various company reports, all point to a deceleration of growth. Is this slowing enough to offset the tight labor markets and rising labor costs in the US?

Perhaps so. If so, investors will once again be searching for growth. The trick will be then to find companies whose prospects are strong enough to offset any macroeconomic headwinds.

Bruce