Devil is always in the details. The market reacted fairly positively as the .75 rate hike hit the market. Then we were told this is a one-time thing and the rate hikes will slow down. This is where investors may think deflation but it can't be further from the truth. We are already in a rescission. Inflation will still skyrocket over June and July. Layoffs are increasing. Powell and Yellen still believe in a soft landing. Jobs down will affect housing. The retail sales report is way down and consumers are being forced to allocate money to food, shelters, and transportation which will take big chunks out of GDP. In yesterday's meeting, Powell admitted we will only react and not be proactive to inflation. This means inflation will remain high and if data remains high they will hit the gas on hikes as they get the hot numbers coming in. This is 100% confirmation of more downturn. Receipt for an upcoming disaster... Another calm before the storm. Retail will get the impression that this is the bottom.
Commodities will not move down until liquidity is pulled from the system. So risk on as I hide in commodities and inflation stocks. I will not invest in tech and crypto. Crypto needs more companies to ZERO out before they have their rebound
Commodities will not move down until liquidity is pulled from the system. So risk on as I hide in commodities and inflation stocks. I will not invest in tech and crypto. Crypto needs more companies to ZERO out before they have their rebound