Inflation is still very high, though. I don't think this changes much, fundamentally. But what do I know...
Can you believe the headlines, it's like the FOMC is done.. inflation is over. I have not seen any price rollbacks in foods. Yes, gasoline has backed off. But crude oil is still at $90.00. All it would take is a major hurricane in the gulf to spike it back up.
Trade what is, not what might be. Meanwhile HU is up .1125 cents/gallon today. So lower prices at the pump might not last even if no Hurricanes hit any time soon.
Tide started turning a month ago now the data is starting to improve as the rate hikes have some impact. Fundamentally both corporate earnings and the economy are doing better then expected suggesting a soft landing is quite likely. More importantly, many stocks priced in far worse and were great buys in recent weeks. I'm not sure what you mean by '"don't think this changes much". Where markets went to last month was pricing in a deep recession that likely isn't going to occur. At a minimum, the cresting of inflation beginning already is making a much deeper sell off in broader markets very unlikely. Which frees some of us to buy cheap stocks in sectors like energy that are posting incredible earnings at discounted stock prices. You can't go too far wrong buying stocks with single digit P/Es some less then 5.
We've got so used to horrendous news the last two years, that now even just bad/terrible news is interpreted as good news by comparison. If a nuclear explosion occurs in Ukraine this year, I suspect the reaction could be far less impacting than how the markets reacted when Chernobyl happened when I was a kid. On the flip-side, if the belief happens it was ballistic missiles, and WW-III is going down the apocalypse route, then get ready for more liquidations!
Yeah. Liquidations of the human kind!!! Never knew at the time back in the 90's Modern English's one hit "I'll melt with you" is about such a thing. More things change ..........
I knew when the oil & nat gas stocks cascaded lower back in July the energy trade was over. It makes sense that inflation is about to roll over as well especially since corn & wheat are also down heavy. I Melt With You came out at the end of 1982 in Modern English's After The Snow LP. It was basically the theme song of the 1982 movie Valley Girl.