Wild Wild Ride!

Financial markets are like ping-pong, where the player on the losing side attempts to outdo the player in form by shattering their momentum. Bears have fought hard to cease the momentum of bulls who have been riding high on the wave of liquidity and hopes of a “soft landing”.

Last week we covered the “triggers” the bears needed to break the equity bull’s momentum. The surgical strike by the BoJ and the Fitch downgrade of the US Sovereign rating was enough to drag down the markets. We also covered the earnings portion, and I am sure the paid subscribers would appreciate our timely call on the markets in the “Chat” section.

We got a slew of economic data this week. A lot hinges on the trajectory of inflation and employment as the Fed has a dual mandate (remember stable prices and maximum employment?). So, we can’t ignore the signs “at any cost”.

Today, we will discuss the economic data in detail, the wild ride I foresee in the FX markets and the implications on our portfolio. I had promised the portfolio update today, but the events needed a separate newsletter. I will likely cover the portfolio update next Saturday.

PS: Subsctack recently introduced a really cool feature where one can earn “rewards for referring” the publication. The top referrer is publicly displayed in the blog's “leaderboard” section.

I have revised and made the benefits more attractive for you, my friends:

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Let’s take a deep dive into the “Wild Wild Ride” that may soon hit our markets!

Let’s go!