The stock market high flyers in this market have real earnings
Even if the CPI numbers are a bit surprising, it doesn't mean that the whole stock market $S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $DJIA(.DJI)$
Let me get this straight. A higher inflation number might slow down the Fed's expected rate cuts, right? Pretty much everybody who cares has heard that. The swap market pricing is not a great insight, Swap pricing is affected by extrinsic factors, those considerations that are separate from the actual strike price. Not everybody cares about this, but its relevant to your point about market expectations.
The equity markets have not been holding on to any start date, and the intense drive is based more on the understanding or no more hikes, and some cuts to come than on any particular schedule. I see that from the price and volume action on Fed speaking days.
And keep something in mind when you suggest that the stock market is not stable,Unlike prior scenes, the high flyers in this market have real earnings, dramatically increased earnings to substantiate their new found valuations.
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- Dr Rck·03-12At the rate US is accumulationg trillions every month in deficit, it appears that the stock market is bummed up by irrational fundamentals, i wonder when will this become a reality - only when the stock market is hit hard.LikeReport