More evidence of a decline in the US Inflation Rate...
The PCE Price Index moved down to 5%, its lowest level since September 2021. Peak was 7% in June 2022. Source: Charlie Bilello
Inflation is always and everywhere a monetary phenomenon...
This chart highlights that #inflation is always and everywhere a monetary phenomenon. Eurozone M3 growth slows to 4.1% in Dec from 4.8% in Nov. Lower money supply growth will bring inflation down further. Source: HolgerZ, Bloomberg
Tech valuations are normalizing
Each generation has its own bubble. Pain after the burst is so severe that it requires new generation of inexperienced investors to become irrational again. Source: LeutholdGroup. Michel A.Arouet
The US government has almost completely ceased the drawing of its Strategic Petroleum Reserves
The US government has almost completely ceased the drawing of its Strategic Petroleum Reserves. We just saw the smallest change in SPR for over a year. Not surprising that oil prices firmed up recently as supply remains incredibly tight. Source: Bloomberg, Tavi Costa
China Stocks Rally in Hong Kong as Holiday Spending Recovers
Source: Bloomberg
Investors are flocking to Europe
Top European Stock ETF is Set for Largest Inflow Since ‘21 - Bloomberg. The Vanguard FTSE Europe ETF (#VGK) has lured almost $700 million in January so far. Source: Bloomberg, C.Barraud
US economy expanded at 2.9% annual pace in Q4 2022
US economy expanded at 2.9% annual pace from Oct-Dec, ending 2022 with momentum despite pressure of high interest rates & widespread fears of a looming recession. It nevertheless decelerated from Q3 3.2% annual growth rate. Source: HolgerZ, Bloomberg
Tough technical barrier for the Nasdaq
Nasdaq futures had started the year on a strong footing, but are losing steam near the 200-day moving average which has been a tough barrier to cleanly break in the past year.
