SPY - 'Inflation Is Falling Like A Rock' Says Market Strategist Ahead Of June CPI Data: Here's Why He Thinks Market Hasn't Topped Out Yet | Benzinga
The all-important consumer price inflation report for June is due Thursday and a bullish market strategist said the data point will likely be a “reckoning of how people view inflation and the state of the economy.”
Inflation Falling: The June CPI report will show that inflation is “dropping like a rock,” and this should push the stock market even higher and the Federal Reserve toward more than two rate cuts this year, said Fundstrat’s Tom Lee in a video posted this week on the firm’s website exclusively to clients, reported Business Insider.
Citing conversations with clients, Lee mentioned three probable scenarios:
- investors fearing a second wave of inflation
- investors expect a Fed rate cut due to a weakening economy and not due to inflation softening
- investors seeing a hard landing.
The strategist underlined a fourth view that “inflation is falling like a rock and so Fed cuts are good, and that’s positive for stocks.” “I think there’s a good chance that if the data ...