The aggressive rise of interest-rate could lead to a financial crisis that scares the Fed to abandon the original policy-tightening plan to avoid a full recession.
Bank of America’s chief investment strategist Michael Hartnett stated when “Markets stop panicking when central banks start panicking”
Investors are selling in this bear market with their negative sentiment which creates the opportunity to buy stocks now.
Signs that prices are falling fast and hard preluding a deflation:
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Energy prices are down sharply.
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Commodity prices are falling fast.
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Rents are now dropping.
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Retailers are slashing prices to clear excess inventory.
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Supply chains are improving. (ECO 101 of Supply & Demand)
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Businesses are failing to raise prices.
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Labor market dynamics are improving.
Inflation spikes are symmetrical. This inflation spike took about a year to form and probably peaked in March or April of this year. This means inflation will probably be back to a not worrisome level by next spring or early summer.
Investment strategist Jim Paulsen stated, “If you buy at the peak, you do pretty darn well over the next 12 months.”
The market reaction to CPI data on Oct 13th at 8:30 AM could give a telltale sign of what’s to come.
As Warren Buffet famously said, to be “fearful when others are greedy, and greedy when others are fearful.”
Opinion: Inflation is going to fall just as fast as it rose, and that’s investors’ cue to enter the stock market – MarketWatch
