New Maverick of Wall Street market breakdown video: https://www.youtube.com/watch?v=bdsHMy1l3tE
Some highlights
S&P 500 total returns adjusted for inflation is the worst it’s been since 1970.
Big tech real revenues adjusted for inflation are about to go negative for the first time in history
Fed is way behind the curve on fighting inflation. What does this mean?
Before JPow, the fed has had to fight escalated CPI by raising fed fund rates. CPI is in blue, and rates in orange. There is currently an insane gap between CPI vs fed fund rates. We need the orange line higher than the blue line.
In history we have never seen fed fund rates this negative adjusted for inflation.
To even begin catching up, the fed must raise rates more aggressively, dramatically higher in a short amount of time. Higher than 50bps in May. But will they? Seems unlikely.