Week In Review
...another month has gone by where inflation continues to steam forward without any regard for the castrated, too little too late attempts the Fed is making to control it.
The volatility and swings in the market this week were some of the wildest that I can remember in recent memory. 38 year market veteran Kenny Polcari said on Friday in his note:
You can feel the anxiety as cross currents hit [the market] from everywhere.
A slowdown in earnings, rising bond yields, an inverted yield curve, central banks hellbent on destroying inflation that they all helped create while they try to maintain some sense of financial stability, a contentious mid-term election, a war in eastern Europe, an energy crisis across Western Europe and an oil cartel that told Joey to shove it.
On top of that, CPI once again came in far exceeding estimates this week, further proving what I have suggested for months: that the inflationary train is flying off the tracks and that the Fed not only has very little control, but is destined to overshoot its mark and tank both the stock market and the economy.
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Kenny also believes that inflation is now officially “entrenched”, or as he wrote this week “firmly established, and difficult or unlikely to change. Ingrained.”
You can read Kenny full thoughts on CPI and the market going forward:
Earlier this week, I released Mark Spiegel’s latest, in which he explains why he thinks markets have continued downside and where he reveals a new long position, in addition to opining on his legacy longs and explaining why he believes Tesla’s growth story is “over”.
Wednesday, I wrote about why Ben Bernanke winning the Nobel Prize was nothing more than a sick joke. As I noted, the man who failed to see the 2008 crisis in advance is being heralded for his "economic research". 14 years later, we are still paying the inflationary & moral hazard cost for his "solutions" - which manifested this morning, yet again, in an 8.2% CPI print.
Last week I wrote about the “Illusion of Safety” - why I think “dip buying” may still be a terrible idea with stocks at these levels.
Also late last week, my friend and real estate expert Kira Mason took the reins, talking about how quickly and drastically the housing market has shifted.
“Though I’ve watched the Philadelphia housing market mirror national trends by slowing from a sprint to a trot to a crawl over the course of the last six months, nothing could have prepared me for the suddenness of this most recent shift,” she wrote.
You can read her analysis of the real estate world here:
Also late last week, I wrote about how OPEC publicly humiliated President Biden by cutting 2 million barrels of oil production per day, sending prices skyrocketing.
The oil producing nations basically told the U.S. to "shove it", furthering the case that the BRIC nations are moving away from the U.S. dollar and separating economically from the West.
Moving on to Covid…
Last weekend I pointed out how Twitter censored the State of Florida’s surgeon general, who has officially recommended against mRNA vaccines for younger men of certain age groups.
And earlier this month, I wrote about the outrageous fact that Peter Daszak of EcoHealth Alliance is still getting millions in taxpayer money to study bat coronaviruses - as recently as last month! Daszak is the head of the taxpayer funded EcoHealth Alliance, which “funnelled hundreds of thousands of dollars to the Wuhan Institute of Virology”. Daszak has worked closely with “bat woman” Shi Zhengli in modifying and researching coronaviruses.
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