to shed light on the implications of the CPI printIt's Wednesday May 15th.Of course, CP I print cooling for the first time in six months and that could be in as welcome news for the fed, the data causing and pushing stocks up here with the and be hitting new all time high and the mean stock rally fly now here game stop is falling today after soaring over 300% in the last month.
Joining us now, we've got Christian Lawrence Rob, a Bank Senior Cross Asset macro strategist, Christian, thanks for coming in person.So markets very happy about the CP I print is a little bit too much happiness for see, I think so. And without that easing, without seeing consumption start to slow, we're not going to get that 2% target.
And actually when it comes to goods, we had core goods deflation I actually think in the next couple of months, some of the shipping costs we saw earlier this year that's going to start filtering through and we could actually get a little bit more upward pressure on that good side of things as well. Then given the fact that it almost seems like by the week, the narrative is changing surrounding the Fed not too long ago we were talking about, hey, maybe we could potentially see another hike now that now the sentiment and now the conversation has really turned to the likelihood of cuts, which I think makes the most sense.
And in fact, a lot of those bigger names to the left uh are simply not participating in the meme trade anymore. But I should note that a lot of these gains have been fleeting and that's something that's really, that does seem similar to the original uh movement that we had last year.I'm gonna show you some breaks in the action.And I see these comment coming across the terminal.And the question is, how much like this are we going to repeat from 2021?We really appreciate it as always.
What you're going to see in Washington over the next year or two is a, is a continued move towards shoring up the defense industrial base and that's really what's behind a lot of the tariffs, uh politics and politics aside.What are some things that investors should keep in mind when we talk about how it could ultimately impact a handful of these US companies here down the road?
And you got to say that in the White House, the last thing you want to do is be, is, is politically, is being caught saying that administration policies are contributing to inflation.I I also want to say a little bit more directly uh something that uh uh MT is uh uh alluding to which is that it's awfully rich that the uh the, the Chinese are talking about uh violating trading standards set in the WTO uh China for China.
So the United States from its perspective, feels like it has very little else it can do other than take unilateral action.My question to you is this obviously coming ahead the November election?It's Washington's instinct to want to continue to try to do everything it can to uh to actively help the the incumbent or, you know, the other campaigns will attack it.
What impact does that have on some of these broader foreign policy moves from the current administration?Firstly, it will keep the aggressive foreign policy stance from from the current administration up. I think actually there's a lot of, uh, back and forth about whether he's, uh, whether he takes votes from Biden or takes votes from Trump.Uh, but in a, in a, in an electoral college race where it's down to 7 to 10 states.I mean, Wisconsin and Nevada, let's say, are two very different states politically.
So I think we're in a really exciting transition right now where for the first year or so through most of 23 many, many companies were focused on just understanding the technology and what it could possibly do.And the challenge is if you take 1000 flowers bloom approach, you don't translate anything into real outcomes at scale.
And that starts to get pretty exciting for businesses rich in terms of the what ceos need to communicate to their employees, to shareholders of their public company here in terms of why this A I investment makes sense. And, and I think that that's what investors want here and then within a relatively short space of time, they should get to see tangible business outcomes.Actually, we would we have this framework in BC G that we talk about all the time.70% is on people process org leadership culture, all of the things to go from having a very interesting capability to actually deploying it.
But of course, you worry, will a I eventually replace my role or my job or will the skills that I need to acquire the skills that I can acquire? But clearly this announcement is a big deviation from that co that his quote was always we're not anti sports were pro profits.So moving forward, they said they will stream at least one holiday game per year as part of that deal.But like I said, this is something that we really haven't seen from Netflix.They aired a live version of The Love Is Blind Reunion.
Um But you know, in linear TV, you have ads in between games, so it could be the same, a huge opportunity you would think for their ad business.This is a really exciting stories for covering it and bringing it to us here and it's been quite a busy week for Google as well. So if you open up your camera and you're looking at what's going on in front of you, it's able to interact with what it sees through your phone's really interesting stuff there.
Now Wolf research saying that this stock is the most extreme example of the meme stock resurgence and shot and we know this is a heavily shorted stock.Short interest on this name climbed 96% on Tuesday.And this comes as the entire equipment, solar equipment stocks of space is struggling with higher for longer interest rates.
He talked about some of the headwinds or some of the challenges that are ahead here for the industry specifically for some power. But it's just fascinating that we're still seeing the retail investors pushing up these me names here.You may want to take your cash from the sidelines and invest in get this municipal bonds.Do a check of the markets here sponsored by tasty trade S and P 500 hitting all time highs as traders start to price in an 80% chance of a fed rate cut by the September meeting.But I do want to point out this bump up that we saw in the S and P 500.
So talk to me about how you're looking at today's print, the reaction that we're seeing within the bond market and whether or not that makes sense to you. Uh So there's a little bit of a relief rally uh to, to, you know, getting a print that's showing some uh continued deceleration. So then Matt, what does that, what are you telling clients then that that means about positioning and where you're seeing that opportunity now?So for very simplistic, when you think of bonds and individual bond or a bond portfolio, there's really two broad types of risk that you have to think about, right?
Now, when rates are coming down for those long, 3040 years leading up to, you know, this, this spike in inflation, your key worry was reinvestment rate risk.You get a coupon or principal and you have to roll it into a lower level of yield, a lower level of income.We think that's behind us and that's a good thing for bond investors.
So you want to move out the yield curve to lock in, you know, the high fours mid forwards that are available at the yield curve, but just not too far.If you're bullish on rates, you think inflation has really come down, go for a higher level of duration and vice versa.Well, $6 trillion in cash is parked on the sidelines as investors reap some of the benefits of those high interest rates, but its rates continue staying higher for longer.
Uh We think the opportunity is there and we think certainly with the tax cut and Jobs Act expiring at the end of 2025 there is a prospect for higher uh higher taxes. So, you know, you consider the last three reports where the consensus was widely different from where the print came in. And if you consider since May 1st the last fo MC meeting, we've rallied 25 basis points on the tenure.
So we're really encouraging our investors to go out beyond the 1213 year part of the curve get paid for taking a bit of uh yield curve risk. I'm sure it was in the making prior to this print because there is this question mark out there about whether or not today's print actually does indicate a dis dis inflationary trend, but the biggest on the street 5600.Msy was sitting here at the desk with us not too long ago.
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