Consumer staples seem to be strongly overbought, the downturn is obvious, this will help other sectors in terms of money flows rotation. No good buys in sector, everything is overvalued - tells you something, doesn't it
The funny thing is - US have been exporting inflation for decades. Now they seem to be importing it. Chinese and German manufacturers rise prices at double digits, while US producers struggle to cope with logistics imbalances. Strong decline after hitting a downtrend resistance shows lack of belief. Wrong stage of cycle.
The pressure is immense. Consumer getting less confident, supply chain disruptions still on, producers prices pressing the margins. No happy ending here
Most of the banks trade at market cap of 50-70% of their actual working capital. They have strong balance sheets with lots of cash. And they will benefit from turning overnight repos with 0,05% to bonds with 3% yield. 30 bln in profits out of thin air. Just have to overcome the panic at some point
Inflation has peaked, but maybe not.
a 0.75 hike is incoming, but maybe not
recession is coming, but maybe not
Too much fear and agenda. Reality is not that frightening
Last time I underestimated oil and gas prices as a cost for utilities. For now dont see any significant downturn there. Labour cost doesnt help as well
Many of the industrials stocks have come to reasonable pricing, but the amount of debt and price of raw materials still weigh on the sector. Possibly a weaker rebound on risk on sentiment
