The Morning Call--Inflation is not going back to normal this year

 

The Morning Call

 

3/18/22

 

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-go-full-green-st-paddys-day-ahead-massive-opex

 

            The back end of the yield curve is flat.

            https://www.zerohedge.com/markets/yield-curve-dramatically-transitions-steep-front-back-end-flatness

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

February industrial production was reported at +0.5%, in line; capacity utilization was 77.6% versus 77.8%.

                          https://www.calculatedriskblog.com/2022/03/industrial-production-increased-05.html

 

                        International

 

The January EU trade balance was -E27.2 billion versus estimates of -E2.6 billion.

                       

                          February Japanese CPI was +0.4% versus consensus of +0.2%.

 

                        Other

 

            Inflation

 

              Inflation is not going back to normal this year.

              https://slate.com/business/2022/03/inflation-federal-reserve-powell.html

 

              The Fed abandons average inflation target in 2020’s.

              https://www.econlib.org/the-fed-abandons-average-inflation-targeting/

 

              Major grocers continue to hike the price of a can of tomato soup.

              https://politicalcalculations.blogspot.com/2022/03/major-grocers-continue-hiking-regular.html#.YjNNcXrMKUk

 

              Mortgage rates now above 4%.

              https://www.mortgagenewsdaily.com/markets/mortgage-rates-03162022

 

    Bottom line.

 

            The latest from Ed Yardini.

            https://www.linkedin.com/in/edward-yardeni/recent-activity/

 

            Looking forward with fingers crossed.

            https://www.zerohedge.com/markets/rabo-markets-are-ignoring-everything-actually-happening-focus-what-they-think-will-happen

 

    News on Stocks in Our Portfolios

 

FedEx press release (NYSE:FDX): Q3 Non-GAAP EPS of $4.59 misses by $0.06.

Revenue of $23.6B (+9.8% Y/Y) beats by $270M.

 

What I am reading today

 

            Letters of marque and reprisal.

            https://marginalrevolution.com/marginalrevolution/2022/03/letters-of-marque-and-reprisal.html

 

                        It is the method not the goal.

            https://www.adamsmith.org/blog/the-bit-that-polly-toynbee-is-missing-about-the-energy-transformation

 

            Nefertiti was more than just a beautiful face.

            https://www.nationalgeographic.com/history/history-magazine/article/nefertiti-was-more-than-just-a-pretty-face?rid=7912D7310BBCEE9B958D4BEDCFEC5AE5&cmpid=org=ngp::mc=crm-email::src=ngp::cmp=editorial::add=SpecialEdition_Escape_20220316

 

            How bones communicate with the rest of the body,

            https://www.smithsonianmag.com/science-nature/how-bones-communicate-with-the-rest-of-the-body-180979643/

 

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