Market Indicators Point to Period of Slowing Inflation Ahead
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The market cycle core - earnings and industrial metals - remains in a downward trend, indicating a disinflationary period ahead.
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Interest rates have diverged from the market cycle but appear to be reconverging in a downward direction.
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Consumer inflation is steadily declining across goods and services.
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Cyclical sectors like materials and energy continue to outperform Treasuries, though they have lost some momentum.
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The divergence between market cycle fundamentals and peripherals like stocks and rates is unusual; yields likely to drop substantially, possibly taking stocks with them.