“More hawkishness from the Fed, high inflation, etc…nevertheless my work says that naysayers risk missing out on a run to a record highs, Tune out the Noise” — Paul Ebeling
The US economy
Red Hot inflation is cooling: good news about inflation is bubbling up even as the Fed raises interest rates and stocks correct
Now, the market is indicating that inflation is expected to average 2.86% a yr for the next 10 yrs, according to data from the St. Louis Fed on the 10-yr Treasury note break-even rate. That might sound low, given that the consumer price index rose at an annual rate of 8.5% in March.
The Stock market
With markets reeling, investors might want to look for signs of capitulation. Capitulation correlates with a “sell everything” mentality. A new narrative that is battling for investor head space is that a recession is inevitable, and that stagflation is descending on the US economy.
Monday was a bleak day for stocks. The last few days have been bleak too. With markets reeling, investors might want to look for signs of capitulation.
On the Crypto front
Have a prosperous week, Keep the Faith!