In his Daily Market Notes report to investors, while commenting on wage inflation, Louis Navellier wrote:
Fed Put Is Still Alive
After a powerful 6% rally, last week’s risks remain.The huge rally last week began when Jay Powell dismissed the risk of a US recession in the near term. It’s not clear how many investors saw a US recession as a real risk. Perhaps the comfort found in the Fed’s stance was that since they didn’t see one coming that they would react strongly if we slip toward a recession, aka, the Fed Put is still alive.
Q4 2021 hedge fund letters, conferences and more
Today, we’re giving back a little of last week's gains as most all the risks are still very much with us: Interest rates continue to rise, as does crude oil, gold and other commodities.
Wage Inflation
The war in Ukraine carries on along with calls for even more sanctions against Russia. Examples of inflation abound beyond gasoline and the consumer reaction has yet to be established but wage inflation should continue to be an important trend with such low inflation and high level of job openings.
In other news, Boeing (NYSE:BA) is weaker after a 737 crash in China and Berkshire Hathaway (NYSE:BRK.A) is buying Allegheny Insurance (NYSE:Y) for $11.6 billion in cash.
President Biden travels to Europe this week to discuss ways to resolve the Ukrainian situation. Covid is still running hot in China but experts don’t see a new meaningful wave from the B.A2 variant in either Europe or North America.
Coffee Beans
After concern about civil rights peaked in the U.S. in early 2021, the share of respondents identifying it as an important issue for the country quickly dropped again – back to 2019 levels as of Q4 2021. As of Q2 2021, 32% of respondents still named civil rights as an important issue for the U.S. By Q4 of the same year, concern about civil rights was overtaken by concern about climate and the environment as well as concern about education, immigration, and poverty. Source: Statista. See the full story here.
