Get a jump start on this week’s trading with Tim’s thoughts on inflation and how to play it.
Do I think Inflation is Rising?
I have to say I do. Last week the Fed told us with a dovish voice that they could still see liftoff when you don’t expect it. I think a lot of folks don’t expect it. Last week CPI data was more than a little hot. Higher oil prices reverse what was the match that lit latest round of CB easing and QE measures. Falling oil really put the wind at the EBC’s back.
Recapping a couple macro themes from today that are part of larger macro views we have.
Today’s headlines on Greece are NOT in the market’s volatility range or where equities should feel comfortable at this level.
Emerging Money Daily Audio Call February 6 – On the call today we discuss the impact of the intense U.S. payroll number which contained enough wage inflation for global markets to fear the Fed again.
After our big move in European equities we are asked to update our targets on the spread and outright underlying stocks, after an aggressive call to buy European equities in later December. At that time we noted three primary factors:
The euro is finding a toe hole on speculation that the new Greece government may soften its stance and work with international creditors.
Emerging Money Daily Audio Call January 30 – Your Ticket Around The World – On the call today we talk about