Make sure to check out Interactive Brokers above as idle cash now will yield more than 4.5% as the Fed just raised rates.
Key Investing Resource: Strategist Larry uses Interactive Brokers as his core brokerage. Feel free to check out IB. I currently park excess cash at Interactive Brokers. Check it out. It’s a great brokerage.
In our emails, we will provide the following coverage points:
According to SocGen, the S&P 500 has the potential to rally by 20% before it reaches the valuation extremes witnessed during the dot-com bubble in 2000.
This is due to factors such as a stronger-than-expected earnings breadth, record highs in profit cycles, and positive shifts in global economic indicators.
Macro Chart In Focus
Analyst Team Note:
“The Biggest Picture: US headline/core CPI trending to 3.6-4.0% by June when Fed expected to cut rates; implicitly Fed tolerating higher inflation (eases US debt burden); weaker policy credibility = weaker currency… why crypto & gold at all-time highs.” - Bank of America
Despite optimism for a mild inflation outcome, recent data suggests that inflation is becoming entrenched, posing a risk of renewed price growth. While cyclical CPI components have contributed to a temporary decline in headline CPI, their descent is slowing.
The market continues to overlook inflationary pressures, thanks to supportive liquidity conditions…
Chart That Caught Our Eye
Analyst Team Note:
China's augmented fiscal deficit is projected to reach 11.1 trillion yuan in 2024, amounting to an 8.2% deficit-to-GDP ratio, the highest since 2020, based on Bloomberg's analysis.
Deflation could amplify the deficit's proportion of GDP, especially since the budget assumes a price growth above 2%, whereas many economists anticipate a lower inflation rate, further elevating deficit-to-GDP.
Sentiment Check
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