CPI Inflation at 7.5%. What else to Expect?

[smallfil]

Oil is likely to stay high because economies of numerous countries will spike demand. People going out will result in greater demand for oil. Vladimir Putin is probably, laughing his head off Joe Biden and his ilk sending US troops and trying to provoke a war they cannot win? All he has to do is go to OPEC and tell them, how about we keep production levels as is. And if a war breaks out? Natural gas to Europe just got even more expensive.

 

[RedSun]

So market rallies yesterday thinking that CPI number could come out to be less than expected...CPI prints hot, market falls, then rallies anyway. Makes no sense. Agree, don't fight the Fed.

Well, is bank analysts keep calling on buying dips, common folks would want to follow. This is exactly what happened.

Investors have been forward looking. They do not consider the discount cash flow model. But they think about how much cash or earning Google or MSFT can generate this quarter. And that is what matter. DCF is too remote and hard to understand.

It is fool's game. No matter what Fed says about inflation, no one likes to hear.

 

[RedSun]

Oil is likely to stay high because economies of numerous countries will spike demand. People going out will result in greater demand for oil. Vladimir Putin is probably, laughing his head off Joe Biden and his ilk sending US troops and trying to provoke a war they cannot win? All he has to do is go to OPEC and tell them, how about we keep production levels as is. And if a war breaks out? Natural gas to Europe just got even more expensive.

The Russia/Ukraine thing is more of a political show. No one wants to fight a war. But Biden and West do not want to show any weakness. So the tension will continue.

Biden/Democrats popularity is inversely correlated to inflation or energy prices. Biden's energy policy and the cold wars with both Russia and China will only hurt American economic interests. But I guess politics trumps economics. So US government will keep borrowing, running a much larger trade deficit.

This is like a family building a mansion with fine security system, having overseas vacation, all on borrowed money.....

 

[murray t turtle]

FOMC waiting for raging inflation, then they may do something....Like a 0.25% bump up.

%%
MOST likely right;
not that it's a prediction. Cant really predict, even though snake oil sellers do it all the time.
I prefer stair stepping volume up or down, but anything can happen. Thanks.
Even 2% inflation is lot over 10 years[20%]...............................................................

 

[Zwaen]

So market rallies yesterday thinking that CPI number could come out to be less than expected...CPI prints hot, market falls, then rallies anyway. Makes no sense. Agree, don't fight the Fed.

beats me too, had the same thoughts.

A great philosopher once said: “stonks only go up”

i guess

 

[RedSun]

Now NQ is back to -2% again....

 

[RedDuke]

The one thing about Fed of the past, once they begin tightening they go further than most can envision. Let’s see how it plays out this time around.

 

[Nine_Ender]

and the markets liked 7.5% recovered from lows premarket, crazy

It's a mixed market with a ton of sector rotation going on ( for months really ).

 

[canada812]

The yield curve between 2 and 10 yrs is dangerously close to flat. This is even before the Fed begins to raise rates. This is not a terrible good sign.

 

[sebking1986]

FOMC waiting for raging inflation, then they may do something....Like a 0.25% bump up.

I'll be shocked if it's as much as that. Might only be 0.1% when they finally do!