Jesus H. Christ on a pogo stick, the whole world is making it seem like one made-up data point from our buddies in Washington D.C. is going to determine all human fate for all time. Give me a break. They’re going to trot out some watered-down number for inflation which represents about 1/4th the true inflation rate. In an event, here is the recent fiction reading, along with forecasts (left side) and last (right side) at the top of the charts.
It doesn’t matter if inflation goes to 0%. It doesn’t even matter if we get deflation. None of this means equities are good things to buy and hold. Yet the narrative right now is that if the CPI is the least bit cool, everyone should fall all over themselves buying the next Carvana, Enron, or FTX.