Marching towards CPI data
It was another day to forget at the market $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$on Tuesday as the tech rich index and broad market index makes new lows. The bears are relentless and seem intent to keep pushing the indices lower. And in response investors are shifting towards defensive assets leaving rates sensitive ones in need of fresh air.
We are now approaching important inflation data which may shape or break markets in the next few days. Wednesday brings the producer price index (PPI), Thursday brings the consumer price index (CPI). These will most probably influence the FOMC when they convene on rates. The detractors are already up in arms with the Feds' inability to sniff out inflation and now their seemingly overeaction to the same inflation which they conveniently ignored just one year back.
Many are now saying that recession is around the corner with 2023 earmarked as a potentialyear of global recession. Much is the pessismism in the market, any optimism is met with substantial criticism.
Moving forward, I believe the market is delicately poised. However, as mentioned earlier, I think the risk rewards here are great especially in the beaten down tech sector. I am slowly layering in into strong names such as $NVIDIA Corp(NVDA)$
Stay safe 😊
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?