PY - Transfer Payments And Consumer Sentiment Spell Trouble

• The economy continues to work through distortions caused by the pandemic.
• Inflation may continue to remain high in the coming months but the data points toward normalization over the next 12 months.
• The Fed is under pressure to try and contain inflation, but there is little they can do without risking a recession.
• The market has been deceptively weak in recent weeks and a handful of stocks are keeping the broad indexes afloat.
• Over the next 12 months, consumer spending will normalize and shift from products to services creating a Peloton moment for many stocks.

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