The broader markets and their respective indices suffered large losses after the CPI data was released on September 13, showing that institutional investors were cognizant of the actual inflation data due to their large put option purchases a week ago. Accordingly, the former Federal Reserve (Fed) chairman, Roger Ferguson, joined CNBC’s Squawk Box to discuss the odds of a recession and the ‘sticky inflation’ numbers. He also added:
The great reversion of 2022
Other market analysts, like Bloomberg’s Mike McGlone, voiced their opinion on where the markets could move after the CPI readings. McGlone argues that unless the risk assets decline further, the ability of people to buy stuff won’t be curtailed, thus keeping the inflation measures high. Furthermore, he added that a rapid decline in the stock market could curtail the Fed hikes, creating a lose-lose situation for commodities. Regardless of the hikes, the environment for risk assets seems to be deteriorating, indicating that more pain should be expected in the near term. Again all eyes will be on the CPI data for next month to see whether Fed’s battle is more successful. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
