“The 1972-1984 playbook reveals how equities bounced proper because the CPI peaked even because the earnings outlook deteriorated markedly on the identical time,” Andreas Steno Larsen, founder and CEO of Steno Analysis, stated in a be aware revealed on Dec. 26, explaining causes to start 2023 with a little bit of danger publicity. “If the market sniffs out an inflation-driven pause or a pivot from the Fed, even earlier than a drawdown in danger property is seen, we might get a disinflation rally that can wrong-foot all funding banks.”
