Weekend Update 11/13/2022

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

Market surging on lower than expected CPI data

⛄️  CPI cooling faster. October 12-month CPI fell to 7.7% including core CPI down to 6.3%-both lower than expected. S&P 500 surged +7% Thu/Fri to end week up +6% on falling inflation euphoria. #RiskON rotation propels Growth names up +8%.

⏪  Pivot sentiment back. Despite muting expectations last week, Fed pivot chatter is back. Markets optimistic if #InflationFears continues sharp declines, Fed will decelerate and ultimately reverse #RisingYields sooner. However, we remain cautiously optimistic as #InflationFears still high and won’t disappear overnight.

🇺🇸  Midterm gridlock. Markets opened week rallying on bipartisan government expectations. While the red wave didn’t materialize, Republicans still likely to take the House, but Democrats retain the Senate. Bipartisan governement typically requires more compromise leading to less uncertainty for markets.

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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.