Weekend Update 6/12/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Continuing high inflation dampens hopes for Fed rate hike adjustment in fall

🎈  Inflation growth resumes. May 12-month CPI grew +8.6%. While still likely peaking, optimistic investors disappointed hoping for March being the #InflationFears peak and continuing April’s slight decline. New 40-year high readout likely dampens hopes for Fed reassessing #RisingYields plan and may force Fed to get even more aggressive.

⛽️  National gas hits $5. Average US gas prices reach an all-time high this week breaching $5 per gallon just 3 months after hitting $4. Last time, we breached $4 was during in 2008. Combined with #RisingYields, investors increasing #RecessionWatch odds. New inflation data only fanning the flames. S&P 500 tumbled over -5% this week.

🛍  Target warns again. Target cut profit outlook just weeks after stunning Retail sector with already poor guidance. Investors getting rattled by wavering #ConsumerNoConfidence as #COVIDRecovery demand may decline due to ongoing elevated #InflationFears.

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As of the publish date, Ursa portfolios do not own TGT with no near-term plans to open any new positions in the next 5 days. Any mention of these securities is for purely informational purposes only and NOT investment advice.

The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.