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Transition period

As the market digests the minutes of the last #FOMC meeting, the initial interpretation of dovishness has morphed into a more hawkish view of #fed future actions. Futures markets still expect 50-75 bps #ratehike for the Sept 21st meeting, even considering the narrative that inflation has peaked in June. Despite that fact, 9 out of 10 stocks in the S&P500 are still above their 50-day moving average. That has been the strength and the breadth of the rally since mid June. We may be working through a transition period where markets need to find equilibrium between fed expected actions, equity valuations and the probability of an economic #recession.

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Source: the daily shot



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