https://www.wsj.com/articles/us-inflation-consumer-price-index-may-2021-11623288303 The idiocy of bond traders is breath taking. Only a monkey would react to these inflation figures on the long end like government bond traders did yesterday. In the good, old times this would have been reason to see futures down 3 candles. WTF is just wrong with these guys? And please, don´t come up with intellectually retarded comments like "it´s transitory". Communicated goal by the Federal Reserve is to let inflation run "hot".
How's investment property looking in Central America? Must be some space getting freed up. Higher supply, lower demand? Where are up to date figures on such things found?
Trading and rationalizing / logical thinking / reasoning don't mix. Let the professional writers, politicians, CEOs, Fed Reserve .... do the rationalizing / logical thinking / reasoning. traders don't attempt to relate inflation number and how much stock price or bond will move (up or down). We just focus on the chart and trade based on what the chart says. also, traders are not judgmental. we wouldn't say high inflation is bad, or no inflation is bad. and we don't need to comprehend those economics. Peace be with you, Amitabha or whatever.
The only thing transitory, is the ignorance of Fed Reserve. But all Central Bankers --perhaps except Canada -- seem to continue to drink the Kool-Aid. Eventually all asset categories will return to reality. Trick is to maintain capital -- and sanity -- 'til it does.
There is some evidence, before this data was released, that the spike in commodities has run its course in the near term. You just had to put the pieces of the puzzle together. The best traders I know don't trade off this type of data (or at least are more concerned with the reaction to the data than the data itself) and then don't argue with how the market reacted.
%% Good points; trading + investing + logical thinking mix well/ just don't think we have all the info because we do not. In hindsight we see better/very well. Inflation can be good with appreciating assets............................................................................... Peace
Since last spring foreign outflows from the USD & treasuries has been significant, this is what they had historically used as a hedge. They have been piling into some tech & health care stocks to name a few, those that did well during Covid & less sensitive to inflation. Behind this are global sovereign wealth funds & central banks. Not like all investors are dumb enough to believe the Fed will put out the very fire they started. I got this from an interview with Stanley Drukenmiller in early May.