It's Wednesday, February 16th, and this is Market Fullery.

I'm Chris Hill and joining me in studio today from Motley Full Hidden Gems, Charlie Travers,

from Income Investor James Early and for Million Dollar Portfolio Ron Gross.

Guys, good to see you.

Good to see you, Chris.

We've got bad news for Borders and Exxon.

Good news for Dell, but we're going to start today with the big macro. The producer price index in January

rose to its highest rate in more than two years. Now Ron this is the index that

measures how much manufacturers and wholesalers pay for goods and materials.

Is this a sign of inflation to come?

When I saw the headline I said, hmm, because the core part of this index where you strip out food and energy look to be rising at a pretty significant rate

Certainly higher than we've seen it in a long time as we know energy and food have been rising, but so you strip that out.

It still looked pretty, let's use the word bad, that inflation may be very

in its ugly head. If you look a little below the surface, you see that 40% of the increase were due to just one particular sector that being pharmaceuticals, specifically pharmaceutical preparation, and it's believed that perhaps this is a one month blip and next month we'll see it go back down to normal

So maybe

inflation isn't starting to bleed into other parts of our economy, but I think that's inevitable, so we're just going to have to keep an eye on this.

But if I'm Ben Bernanke and I wake up and I see this headline, I'm not happy, am I?

The headline, no, but as I, same same with me but I think once you read down

into into the wise and the what fours it's it's maybe not so bad just as an investor how much

does inflation play a role in your decision to buy or sell a stock?

How much do you factor this kind of thing in?

So it's really a more general question of how much do you factor in macroeconomics to your investment

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