Hello readers,
Today, the financial markets are abuzz with the latest inflation report, and the implications are significant. The core consumer price index rose 3.8% from a year earlier in March, maintaining the pace from February. This data has reshaped expectations regarding the Federal Reserve's potential rate cuts, leading to swift market reactions. Stocks fell, bond yields rose, and real estate stocks took a hit, reflecting the market's response to the prospect of higher-for-longer rates.
Despite these developments, equities have displayed remarkable resilience, with the S&P 500 remaining up more than 8% year-to-date. This raises questions about the market's dependence on easy money from the Fed and the potential impact of underlying economic growth and transformative trends like the rise of artificial intelligence. Careful with the upcoming Bust!
Stay tuned for more updates and analysis as the situation develops.
Daniel Silva
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