Jul 27, 2023
(7/27/23) An overview of the current earnings reporting reveals profit margins have declined to pre-pandemic levels. Markets' flat response to Jerome Powell post-FOMC meeting presser The effects of shrinkflation are beginning to fade; no 2% inflation expected until late 2025. Will rate cuts return by then? Markets don't have a friendly Fed; a huge concern for impact of the Lag Effect; still possible for yet another rate increase of .25 to .50% by September. Market expectations vs Consumer Sentiment: Could there still be a "soft" landing? Is 3% inflation good enough? Powell says drop in headline inflation will encourage consumers--counter-productive for flagging inflation. Core Inflation is a better gauge of economic reality. Still no Recession? Why Chipotle is the world's most expensive burrito, and a good mid-level economic indicator. Why Technical Analysis is not voodoo; Recession still coming: 6-mos from now or late 2025? The Lag Effect Factor; the fallacy of MMT has come to pass.
SEG-1: Mega Cap Earnings Review
SEG-2: Was This the Last Fed Rate Hike?
SEG-3: Falling Headline Inflation Works Counter-Intuitively Against
the Fed
SEG-4: The World's Most Expensive Burrito
Hosted by RIA Advisors Chief Investment Strategist Lance Roberts,
CIO, w Senior Financial Advisor Danny Ratliff, CFP
Produced by Brent Clanton, Executive Producer
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Watch today's show, on our YouTube channel:
https://www.youtube.com/watch?v=tqRA0UPAUPc&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=45s
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The latest installment of our new feature, Before the Bell, "Dow
Winning Streak Keeps Going" is here:
https://www.youtube.com/watch?v=Ppk8LAZyLus&list=PLwNgo56zE4RAbkqxgdj-8GOvjZTp9_Zlz&index=1
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Our previous show is here: "Is This the Last Rate Hike?"
https://www.youtube.com/watch?v=FgjXnLjDtQA&list=PLVT8LcWPeAugpcGzM8hHyEP11lE87RYPe&index=1&t=5s
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Articles mentioned in today's show:
“Beating Estimates” – How Companies Win In Earnings Season
https://realinvestmentadvice.com/beating-estimates-how-companies-win-in-earnings-season
Economic Cycle Set To Improve But Are Bulls Too Bullish?
https://realinvestmentadvice.com/newsletter/
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Get more info & commentary:
https://realinvestmentadvice.com/newsletter/
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