Weekend Update 9/18/2022

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

Market tumbles as inflation not declining as quickly as hoped

💸  Inflation expectations reset. August CPI showed inflation growing 8.3% above the expected 8.1% while core CPI grew to 6.3%. Investors were likely pricing in even lower whisper numbers expecting sharp inflation declines to re-rally markets. S&P 500 tumbled over -4% on Tuesday on the return of #InflationFears.

🏦  Yield projections steepen. 10-year treasury yield rose +4% last week expecting hawkish Fed commentary next week. With #InflationFears declining slower, near-term #RisingYields now expected to target 4.5% from prior 4%. A 75 bps hike is expected next week.

️📦  Shipping volume tumbles. FedEx warns macro conditions materially deteriorated as weak shipping volume trends accelerating. Given logistics role in larger global economy, #RecessionWatch alarms ringing as resilient spending may be finally teetering into #ConsumerNoConfidence. S&P 500 finishes down -5% for week.

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As of the publish date, FedEx is not a portfolio holdings of Ursa with no plans to open 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.