And while JPM has long been in the transitory bandwagon, the bank s strategist Andrew Tyler admits that in a crack to the party line, his view is that we’ll see inflation expectations continue to move higher over the summer, as we see improving macro data (NFP, CPI, PPI, and Retail Sales the most topical).
To help investors formulate their own inflation expectations - especially amid rising strains on the global supply chain created by COVID - he presents out the following charts:
LAD vs. KMX vs. IYT vs. SPX
ISM vs. CPI vs. PPI
ISM vs. 5Y BREAKEVENS vs. 5Y5Y INFLATION SWAPS
by Tyler Durden
Monday, Apr 26, 2021 - 01:40 PM
Last Wednesday, we reported that based on recent earnings calls, Companies Are Freaking Out About Soaring Costs and today we got more confirmation of this in a Bank of America report.
. which warns that Inflation is
arguably the biggest topic during this earnings season, with a broad array of sectors (Consumer/Industrials/Materials) citing inflation pressures.
Exhibit A: the chart below showing the number of mentions of “inflation” during earnings calls which exploded, more than tripling YoY per company so far, the
and the biggest jump in history since BofA started keeping records in 2004.
The tsunami wave of monetary and fiscal profligacy combined with an orgy of optimism about vaccinations and a post-COVID world, have sparked the broadest rally in the underlying components of the S&P 500 in history. (487 names on the S&P 500 Index have climbed above their 200-day moving average)
Source: Bloomberg
But it was Small Caps that dominated today (after collapsing yesterday). Nasdaq lagged but all the US majors were higher and thelast 30 mins saw the ubiquitous buying panic..
Interestin .
One of the men who died in the fiery Houston Tesla wreck that we have been reporting on over the last few days has been identified as 59-year-old Dr. William Varner.