Weekend Update 8/28/2022

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

Powell pours cold water on inflation peak rally

🛑 Not so fast. In Jackson Hole speech, Powell reiterated Fed will battle #InflationFears “until the job is done” returning to 2% target. He further noted “likely to require a sustained period of below-trend growth” and “some pain to households and businesses”. In other words, aggressive #RisingYields environment in early innings and not ending just because inflation may have peaked.

😵  Sobering market. Powell commentary was a sobering message to peaking inflation drunk markets. We were always skeptical of the market optimism and continue to not expect the Fed to take foot off gas until 2H next year. Unfortunately, peaking inflation at ~9% is still just the start of a long road. S&P 500 tumbled over -3% on Friday and ended week down -4%.

🚙  CA banning gas cars. California banned of new gas car sales by 2035 with interim quotas starting at 35% of new cars required to be zero-emissions growing to 51% in 2028, 68% in 2030 and 100% in 2035. With other states and markets likely to follow, #ElectricVehicle adoption continues to accelerate.

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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.