PPI collapsing, nearly 60% of CPI components in deflation, retail sales trending negative. Profit Recession just getting began with 34 firms reporting -6.7% to date… – Investment Watch
Non existent credibility cause the Fed is again out of synch with the market and the info. Yields dropping as a brand new Fed policy error of staying too high too long would kill any soft landing narrative. Powell’s got some explaining to do. pic.twitter.com/GVsDvjIqab
If Empire recent orders index is any indication of where ISM recent orders will come on Feb. 1st, and there actually appears to be a correlation, it will be ugly. -31.1 is the third worst monthly number for the reason that survey was created in 2001. pic.twitter.com/2T15Bq0CYR
The 10Y is consolidating before its final move upward to five%. This will probably be the ultimate nail within the coffin for this market. I expect the S&P 500 to plunge to 2000, the Russell 2000 to drop to 1000, and the Nasdaq 100 to fall to 6500.
Former Secretary of Labor Robert Reich believes the Federal Reserve’s rate hikes should not working and said the central bank should stop believing it may possibly easily stop profit-price inflation by mountain climbing rates of interest.
Soft landing for the US economy? It’s looking less and fewer likely. The bond market (10-year Treasury yield) just shed -14.1 basis points. As I all the time told my investments students, any 10 basis point shift within the 10-year Treasury yield is important.
Let’s start wit the US business leaders survey of current conditions. It just crashed to -21.4
Then we have now US industrial production, down -0.7% in December. And is up only one.65% year-over-year as M2 Money growth stalls.
See alsoInflation Alert! Inflation in services (where nearly 2/3 of consumer spending goes) jumped +0.6% month-to-month and seven.5% year-over-year to a 40 12 months high. Inflation is NOT slowing down and data shows it’s becoming entrenched in services, where the majority of cash is spent.