Fed's "Mild Recession" Prediction Will Be As Accurate As Their "Transitory Inflation" One
"You could say there was something in the [CPI] report for everyone: both the bulls and the bears."
This is the latest, up to the hour thoughts on the market by my kind friend Kenny Polcari, a 40 veteran of capital markets.
For those who aren’t familiar with Kenny or don’t recognize him from TV, he is Managing Partner of Kace Capital Advisors and Chief Market Strategist at SlateStone Wealth. He started his career on the floor of the New York Stock Exchange (NYSE) as an institutional broker back in the early eighties when the march of electronic trading was already taking its first steps, and the great bull was first learning to run.
Here’s his take on markets heading into the Thursday, April 13, 2023, trading day:
The post has been lightly edited for punctuation and grammar.
CPI came in inline and maybe a hair lighter (softer) or not - but well within expectations – so there was nothing new to see yesterday.
Some saw declining inflation (which is true) while others saw ongoing stubbornly sticky inflation (which is also true). See that? You can ride on both sides of the fence and be right either way. M/M top line was softer at +0.1%, yet ex-food and energy m/m was +0.4%. Y/Y top line came in at 5% yet ex-food and energy, y/y was +5.6%.
You could say there was something in the report for everyone: both the bulls and the bears.