Jesse Felder: Investors Go ‘All In’ On The Soft Landing Narrative

by Jesse Felder

Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.

Stocks celebrated the positive surprise on inflation this week but the festivities may be a bit premature.

https://twitter.com/jessefelder/status/1724492755068719562

In the short run, measures of inflation breadth like median CPI suggest the Fed’s battle is far from won. Longer-term factors like fiscal policy also remain a concern.

https://twitter.com/jessefelder/status/1724142096104513713

These facts haven’t stopped the stock market, however, from fully pricing in an “immaculate disinflation.”

https://twitter.com/jessefelder/status/1724807609755238599

Hedge funds have now gone all in on the “soft landing” narrative.

https://twitter.com/dailychartbook/status/1725125311648477222

Meanwhile, the inside of the stock market is now sending a clear message that directly contradicts that narrative.

https://twitter.com/albertedwards99/status/1725420250022171007

Thanks for reading and have a great weekend!