Peak inflation confirmed! Buy anything and everything. SBF Theory confirmed!
Yep, that’s what happened. 0.3% core CPI month to month and 0.4% total, giving us 6.3% and 7.7% year over year (versus prior month was 6.6% and 8.2% respectively). The Fed will still be raising another 50-100 bps from here, but as we espoused in past writings, 0.3% eventually annualizes to 3.6%. This rate of change, second derivative thinking with a market with CTA’s short, hedge funds low net and most investors bearish, led to an epic rally. The $SPY up near 6%, $IWM 6% plus and $QQQ near 8%. Breadth and breathe taking! So, now what?