The Market Is Experiencing Indigestion Regarding How To View Inflation

In his Daily Market Notes report to financiers, while commenting on the persisting inflation, Louis Navellier wrote:

Odeys Special Situations Fund Strives For Noncorrelated ReturnsOdeys Special Situations Fund was up 1.6% for December, bringing its full-year return for 2021 to 24.4%. The fund has enjoyed a compound yearly development rate of 35% since its beginning in October 2019. Q4 2021 hedge fund letters, conferences and more The Special Situation Funds benchmark, the MSCI World USD Index, returned 4.3% for Read MoreIndigestion
The marketplace is experiencing indigestion regarding how to see inflation, what to do with P/E multiples, how high rate of interest may increase, and importantly how quickly, as the Fed removes the punch bowl of monetary support. However, an awaited reopening will provide healing opportunities that are fairly predictable.
Expect some near-term volatility as we browse to the end of the pandemic and begin to experience the tapering by the Fed and use the pullbacks as a buying chance to position for a strong healing come spring.
The bright side is that as painful as the start of the week was, basically all that NASDAQ did was “retest” its December 3rd and December 20th lows intraday prior to re-surging on greater trading volume. The subsequent revival in NASDAQ has been on higher trading volume which is an excellent sign of consistent order imbalances which the existing rally is likely sustainable.
The only problem is that when NASDAQ retested its December 3rd and December 20th lows, they were a bit lower on each retest, so some technical experts might argue that the stock exchange is simply having a “relief rally” that might eventually fizzle. I am not in the relief rally camp, given that the stock exchange is now starting to release another round of spectacular quarterly revenues.
Inflation Persists
The huge news today was that inflation is now performing at the greatest rate in nearly 40 years after the Labor Department revealed on Wednesday that the Consumer Price Index (CPI) increased 0.5% in December So overall, inflation continues on the customer level and is not expected to ease off up until possibly the second half of 2022 when some supply lacks diminish.
If you believed the other days CPI was bad, todays Producer Price Index (PPI) figures were more troublesome. The PPI increased only 0.2% in December, which was considerably below economists agreement price quote of a 0.4% boost but on a routing 12-month basis, the PPI rose a spectacular 9.7% in 2021. Ouch!
Longshoremen Holiday
The variety of containerships off of the ports of Long Beach and Los Angeles are now back above 100 as lots of longshoremen that operate the cranes have called in sick from Omicron. So if you are searching for some excellent news, after the U.S. gets infected with Omicron and all of us recuperate, then maybe some of the port and shipping bottlenecks can get dealt with when and for all.
Currently, the Atlanta Fed is approximating that fourth-quarter GDP growth was running at a robust 6.8% annual pace!
This is a good time to advise all investors that as inflation continues as the Fed raises interest rates that the significant gratitude in domestic genuine estate is anticipated to continue to slow as greater home loan rates and price issues cut the annual rate of rate gratitude.
I should include that Fed Chairman Jerome Powell on Tuesday prior to the Senate reaffirmed that inflation was now the Feds primary focus which the Fed would be raising interest rates because the economy no longer needs emergency situation assistance. This essentially implies that the stock exchange is anticipated to stay your best inflation hedge, particularly growth stocks that are sustaining strong sales and revenues.
The Labor Department reported that unemployment claims in the current week rose Overall, it appears that Omicron might be impacting weekly joblessness claims, but as long as continuing claims continue to decrease, it bodes well for a strong job market.
Coffee Beans
Even with the Audobon Society expressing concerns about laser blinding the birds, the city is preparing to begin a pilot program to evaluate green lasers to drive the crows away. The city mayor says lasers would be far better than spending hundreds of dollars to spray wash the sidewalks of bird droppings every couple of weeks.
Upgraded on Jan 13, 2022, 2:18 pm

Odeys Special Situations Fund Strives For Noncorrelated ReturnsOdeys Special Situations Fund was up 1.6% for December, bringing its full-year return for 2021 to 24.4%. The fund has enjoyed a substance annual growth rate of 35% considering that its inception in October 2019. Q4 2021 hedge fund letters, conferences and more The Special Situation Funds benchmark, the MSCI World USD Index, returned 4.3% for Read MoreIndigestion
Currently, the Atlanta Fed is approximating that fourth-quarter GDP growth was running at a robust 6.8% annual speed!
Even with the Audobon Society revealing concerns about laser blinding the birds, the city is preparing to start a pilot program to test green lasers to drive the crows away.

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