Do the math. Core inflation will go through the roof. Fed will be forced to raise interest rates by 400. Market will capiulate. Dont say u werent warned. My humble opinion only. I have now shorted everything.
The Fed continues to raise rates despite tame data at the moment because they know its better to use a "measured" approach then the sledge hammer approach - which is what they will do eventually anyway. They know whats round the corner....they are trying to soften the blow!
And u say oil is bullish for the market. What do u think we imported at such a high price in the last quater - soya beans? This serious imbalance and threat to the $US can only be met by rising interest rates.