Vertical Research Advisory
Log inJoin Now
Newsletter

VRA Letter: More Friendly Inflation Data with Incomes Soaring. Must Own Small Caps (TNA). Textbook Bull Market Action. Bitcoins Ramp Higher Continues.

Good Thursday morning. This mornings inflation data (core PCE deflator) is known to be the Fed’s preferred inflation gauge and we have more good news, meaning broad disinflation continues to build. The year/year core price index ...

Posted On February 29, 20244 MIN Read
Share:
vra-default-img

Good Thursday morning. This mornings inflation data (core PCE deflator) is known to be the Fed’s preferred inflation gauge and we have more good news, meaning broad disinflation continues to build. The year/year core price index rose 2.8%, which met economist estimates, allaying the fears of many that inflation was making a dangerous comeback. It is not. The really good news came from personal income, which rose a massive 1% on the month, crushing estimates of just .5%.

Our view over the last 2 years has been that the economy is in excellent shape, with personal incomes and productivity rising sharply. The economy is picking up steam, which means corporate earnings will continue to rise, “forcing” stock prices higher. For those that have wondered exactly how it is that the markets can continue to rise at such a fast pace, know this; the markets are a discounting mechanism and as such, they’ve been telegraphing this broad economic strength. The markets…somehow…always know what li...

Continue reading your article and start your free 14-day trial with VRA.

Start Free Trial

Already have an account? Sign in.

Related Post

May 15, 2024
VRA Letter: April CPI; Lowest Inflation in >3 Years. Direct Evidence; Markets Discounting Falling Inflation & Rates. Pounding the Table on PM’s/Miners

Good Wednesday morning. Heads up: I’m scheduled to be on Fox Business with the always locked-in Charles Payne and his excellent show "Making Money” in the 2 PM EST hour. Hope you can join us! Following yesterdays tame PPI, featuring a sharp downward revision in the March PPI from 0.2% to –0.1% the markets responded with a […]

May 14, 2024
VRA Letter: Tame PPI Sets the Stage for Tomorrows CPI. Interest Rate Sensitives Point to Lower Rates. Must Own; Precious Metals/Miners. Meme Stock Craze, Again. Latest from Uber-Bull Rich Ross.

Good Tuesday morning. As we covered yesterday it’s a big week for the inflation narrative. This morning we learned that the PPI came in a bit hot, even as it matched y/y estimates of 2.2% inflation, the monthly read of PPI (ex food and energy) came in at .5% vs estimates of .3%. Importantly…and this […]

May 13, 2024
VRA Letter: VRA Macro Views Fully Intact. The Week Ahead, As Rate Cuts Near. SOXL; Must Own. VRA System Buy Signals.

Good Monday morning. A quick recap of our macro views; We’ve entered a generationally strong, structural bull market, powered by:  a) US consumers and co’s in their strongest financial position in decades. b) the burgeoning “Innovation Revolution” (led by semis/tech) that will power earnings and GDP growth for years to come (2030+). c) overtly and […]

May 10, 2024
VRA Letter: VRA Quick Hitters

Good Friday morning. VRA Quick hitters. 1) "Don’t Fight the tape, don’t fight the Fed". Until yesterday…when it became clear to us that the Fed will soon start cutting rates (following June cuts from the BOE and ECB)…I had not written those words in at least two years. A truer Wall Street axiom is hard […]

May 09, 2024
VRA Letter: VRA System Trading/Investing Heads Up. Market Update; Rate Cuts Are Nearing; Don’t Fight the Tape, Don’t Fight the Fed. Pm’s/Miners; Next Leg Higher is Underway. Xtract One

Good Thursday morning. Heads up: going forward we will be more active in trading ETF’s (via our preferred leveraged and non-leveraged ETF’s). Using VRA Investing System readings to facilitate each trade, we’ll have a more proactive approach in trading our favorite ETF investment vehicles. In bull markets (this one) we’ll look to to “buy” an ETF when […]