First I’d like to apologize for the lack of a post. It is extraordinarily rare that I go this long (sixteen hours, for God’s sake) without a new post, but two things contributed to it. One was catching up on my energy from my recent travels. And two was a dinner date with a dear lifelong friend (who is a celebrated author and tech investor) at his club. The prospect of endless cocktails and scintillating conversation was irresistible, and he and I stayed out until quite late. I was found, I am told, roaming the Castro district wearing high heels and a revealing nightgown.
But I’m back, ready to talk about the markets, and the big news this morning was the red-hot inflation numbers that came out. My hunch is that this is merely the beginning of a steady string of inflation shockers, and the self-serving government employee Jerome Powell and his 20,000 underlings (that’s a true number) will be revealed for the shameless hucksters they truly are. It’s going to show up in our lives every day, just like the $92 bill I paid for a small single bag of groceries at Whole Foods yesterday afternoon.
The effect was immediate with bonds (since red-hot inflation doesn’t exactly encourage the government to keep their own rates at 0% forever):
So, much longer term, we can see how bonds (by way of TLT this time) have precious little holding them up anymore:
Which the tech stocks (QQQ) aren’t liking at all; take note of the cute reversal top:
Having taken such a dreadfully late start on the day, I best end it here, but I’ll be in gear henceforth.
