Weekend Update 12/18/2022

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

Markets cheer lower inflation, but higher rates and recession driving new year fears

💸  Inflation slides. Nov CPI slowed more than expected just up 7.1% (vs. 7.3% expected and 7.8% in Oct). Markets cheered better #InflationFears data despite services inflation still sticky and high.

🏦  Hikes slow, but to continue. As expected, Fed slowed #RisingYields with 50bps hike. Fed rate is now 4.25-4.5% and expected to climb past 5% at peak (implying 75bps to go). Powell noted slowing inflation encouraging, but still ways to go. Markets reverse early week gains from CPI data cheer.

😬  Recession fears. Global recession fears building with likely prolonged #RisingYields for US and internationally. Investors shifting from bullish reduced #InflationFears sentiment to bearish rising #RecessionWatch concerns. S&P 500 ends down -2% for the week.

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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.