In the stock market....good news is bad news

Degenerate Business School

English - July 11, 2022 04:00 - 32 minutes - 22.1 MB - ★★★★★ - 16 ratings
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In the era of quantitative easing that has predominated since 2008, bad news is good news. And good news is bad news.

Take for example GDP. The Atlanta Fed Nowcast has telegraphed we're already in a recession. Bad news for America, but good news for stocks badly in need of more Federal Reserve accommodation.

On the other hand, Friday's jobs report shows ongoing strength in employment. Good news for America. Bad news for stocks, which remain vulnerable to the tightening cycle. And in the context of low unemployment, the Fed has yet more license to tighten.

But on the doorstep of June's CPI print on Wednesday, we ask: what is actually priced in?