Good day Finom Group members. As I continue to recover from my illness early this year (cough/cold), we will be foregoing this week’s State of the Market video. But please continue to read and digest our ongoing dissemination of 3rd party Research. This latest report from J.P. Morgan focuses on subject matter we’ve discussed in…...
Core Services Inflation is Sticky, but the Fed is Exerting a Lot of Pressure Core CPI services inflation is still sticky; the Fed’s favored measure of services ex-energy and rents rose 0.36% in January, slowing only trivially—well within the mar gin of measurement error—from the 0.39%—increase in December. The usual culprits misbehaved again, with vehicle…...
Cross-Asset Strategy: With equities trading near last summer’s highs and at above-average multiples, despite weakening earnings and the recent sharp move higher in interest rates, we maintain that markets are overpricing recent good news on inflation and are complacent of risks. Equity markets appeared to read this month’s central bank meetings as dovish, while dismissing…...
