The recent news articles suggest the following factors contributing to the elevated US inflation:
Concerns about the Federal Reserve's ability to tackle inflation: The minutes of the Federal Reserve's rate-setting committee meeting revealed that policymakers were not confident that inflation was moving sustainably towards the target of 2%. The strong US economy and an uptick in inflation led to concerns that progress against rising prices had stalled.
Excess dollar liquidity: According to TS Lombard's report, continued excess dollar liquidity is expected to keep prices rising faster, potentially settling around 3% instead of the Fed's 2% target. This scenario threatens bonds over the long term and could impact valuations, implying a higher terminal rate.
Inflation expectations: Market analysts anticipate that US inflation will settle higher than the target due to factors such as excess liquidity and the potential impact on capital goods and other sectors. This higher inflation scenario could have implications for bond markets and valuations.
uk inflation came in higher than estimated but still lower than the previous month's inflation. this lowers hopes of a rate cut by bank of England.
nvda reported a record-breaking financial performance for the first quarter of fiscal year 2025, with a revenue of $26.0 billion, marking an 18% increase from the previous quarter and a staggering 262% rise from the same period a year earlier. will the ai rally continue to push the stock market to new highs? nvda hit 1000 post market.
$S&P 500(.SPX)$ hovers at resistance zone while$DJIA(.DJI)$ retreats from all time high. if they are unable to break above resistance then they will fall back to 5066X and 38,322 respectively.
after the fed minutes, there seems to be a hint of further rate hikes. $US2Y(US2Y.BOND)$ hovers at 5% zone.
do apply automatic investment system where you add shares at each 10% drop or at support zones if you know technical analysis. this way you conserve your capital while the stock is strongly downtrending. do take profit at 10% intervals or at resistance zones if you know technical analysis. this way you have capital to buy the dip. only applies to stocks in an index or warren buffett would approve. bon courage.
merci beaucoup@TigerStars @Daily_Discussion @TigerWire @koolgal @Asphen
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