Cheers to SBF!

Stocks up 5-7%

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?