- The U.S. stock market is oversold, and there are less than two weeks of trading until the end of 2021.
- Inflation readings were very low at the end of 2020, but the December 2021 CPI numbers, when reported in January, could be over 7% higher due to base effects and low numbers rolling off the calculation of the CPI index for the year-over-year comparison.
- The dollar is appreciating on a trade-weighted basis and against the euro. I would not be surprised if by the time this monetary tightening is over the U.S. dollar and the euro are closer to parity.
For further details see:
2022 Could Be 'Like 2018 All Over Again'