JPMorgan CEO Jamie Dimon is so worried about inflation he won't invest the Wall Street bank's cash. Homebuyers are backing out of the market amid a pricing frenzy and used car sticker shock is now a bigger deal than new car pricing on the dealership lot.

It is not news that inflation is running hot. The May Consumer Price Index spike of over 5% was the highest since 2008. Strip out food and energy prices from that inflation print and it was the highest inflation reading since January 1992. Producer prices, meanwhile, rose at their fastest pace in over a decade. And according to a Federal Reserve Bank of New York survey, consumers fears about inflation are at a record, too.

A good question then: Why is the S&P 500 Index setting new records, the Dow hanging near if now slightly below a post-pandemic rally record, and the Nasdaq coming off a recent seven-day winning streak right before the Fed's meeting concludes on Wednesday? All three major stock market indices are now between roughly 90% (the Dow) to over 110% (Nasdaq) above their pandemic lows.

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