gilead, in total agreement
Equity markets are also highly manipulated. I mean we've already seen 4 bear market rallies of 11%+ each, in only 8 months ! I mean the bear market rally from June 14 to Aug 14 was one of the most intense of all time. Nasdaq went up 24%/S&P up 19% ! Anyway 4 bear market rallies of that intensity is rare in such a short time. In the meantime, R59s assertion that because housing has fallen a lot , means the fed will likely end hikes in Dec will be proven to be wrong IMO. I cited an article in one my posts today that shows rent inflation is still a huge problem, and it appears Wage inflation is as well.
I see no end to this high level of inflation, unless Powell continues to be aggressive, raising till at least 4.5%-5%, which means continuation into 2023, and no pivot like the markets are assuming as usual. Seems markets are already forgetting what Powell has been saying since Jackson Hole, and are just assuming he'll never follow through with this super hawkish 180 he made. I believe he will, and will be willing to put the economy into recession, which is the right move in my view, to make sure we stamp out this ugly inflation once and for all ! To not do this means risking inflation becoming entrenched, and having 1970s like stagflation, possibly for years.
AI
