Are markets right in expecting an ‘immaculate disinflation’? BY VIVEKANAND JAYAKUMAR - 02/06/23
All in all, it appears that both the stock and the bond markets may be getting ahead of themselves by assuming that the worst is over. Far too much is now riding on expectations for an early Fed pivot. Some analysts have also argued that stock investors may be ignoring negative operating leverage and a possible squeeze on profit margins.
Given the ongoing uncertainty about the future pace of disinflation, and potential risks involving premature easing of financial conditions and stickiness in services inflation, it may be in the interest of market participants to avoid excessive exuberance.
Given the ongoing uncertainty about the future pace of disinflation, and potential risks involving premature easing of financial conditions and stickiness in services inflation, it may be in the interest of market participants to avoid excessive exuberance.
It is too early to claim victory in the inflation battle or even to rule out a resurgence in underlying inflationary pressures — that was one of the key takeaways from the experience of the 1970s.
Americans’ Economic Outlook Is Mostly Negative in Gallup Poll
https://www.bloomberg.com/news/articles/2023-02-06/americans-economic-outlook-negative-despite-improvement-signs
A record number of Americans expect a stock-market slump in 2023 and a majority sees inflation accelerating, according to a poll of economic expectations, even as price growth is slowing.
https://www.bloomberg.com/news/articles/2023-02-06/americans-economic-outlook-negative-despite-improvement-signs
A record number of Americans expect a stock-market slump in 2023 and a majority sees inflation accelerating, according to a poll of economic expectations, even as price growth is slowing.
Bond Traders Quickly Come Around to Fed’s View on
Peak for Rates
https://www.bloomberg.com/news/articles/2023-02-06/bond-traders-quickly-come-around-to-fed-s-view-on-peak-for-rates
Related:
https://www.bloomberg.com/news/articles/2023-02-06/steve-eisman-of-big-short-fame-sees-a-new-paradigm-unfolding-in-markets
https://www.bloomberg.com/news/articles/2023-02-06/bond-traders-quickly-come-around-to-fed-s-view-on-peak-for-rates
Related:
As the
Federal Reserve prepares for another interest rate hike, volatility lies ahead by VIVEKANAND JAYAKUMAR - 01/31/23
https://www.bloomberg.com/news/articles/2023-02-06/steve-eisman-of-big-short-fame-sees-a-new-paradigm-unfolding-in-markets