Anavex Life Sciences Corp (AVXL)

[RedShoulder]

Check out this good news article copied from the ST board. This may be the turning point according to real data. That would be great for AVXL's coming out party.

"Inflation is starting to 'drop like a rock' leading to deflation in certain areas of the economy," Fundstrat says."

"Inflation is starting to "drop like a rock" rather than a feather, leading to outright deflation in some areas of the economy, Fundstrat's Tom Lee said in a Wednesday note."

"And according to Lee, inflation is quickly cooling."

"42% of CPI components are declining from recent highs = deflation," Lee said, adding that five of the nine US regions saw outright deflation in July on a month-over-month basis.

"These 5 regions represent 49% of GDP. In East North Central, CPI annualized is -3.96%, outright DEFLATION," Lee said.

Additionally, leading inflation indicators like used auto prices, airfares, and real estate "suggest many other components of CPI could start falling outright," according to Lee.

"There are many counterpoints to suggest inflation could fall faster than consensus expects. This, in turn, would change the path of Fed policy. Arguably, the inflation swaps markets are already reflecting this, hence, the lower levels of implied inflation," Lee explained.

Digging into the actual components, Lee highlighted that commodity prices like gasoline, lumber, and wheat are falling like a rock, as are electronics, meats like chicken and beef, and clothing.

At the same time, used cars and vehicles, airfares, and durable goods are "starting to fall like a rock," and history has shown that rent and housing costs will "fall like a rock" soon, according to the note.

Analyzing the previous 40 years of rent data for New York City and San Francisco, Lee found that "when owners equivalent rent falls, it falls like a rock...rents could fall a lot faster than many expect."

With the view that inflation is quickly falling, Lee reiterated his call for a second half rally in the stock market that could ultimately drive the S&P 500 to new highs by year-end. "Bottom line. We see second half rally thesis intact," Lee concluded."

https://markets.businessinsider.com/news/stocks/inflation-prices-dropping-deflation-economy-rates-fundstrat-stock-market-2022-8