Disinflationary BOOM Phase!

The market is entering a disinflationary boom phase, characterized by lower inflation and better-than-expected economic growth. This shift creates an opportunity for summer stimulus.

Inflation continues to Melt lower👇🏽

With consistently lower inflation rates, the market can move beyond concerns about stubborn inflation.

Notably, Energy and Food inflation have made the most progress over the past couple months.👇🏽

Opportunity for More Stimulus

Now that we have a lower inflation bias , we should see risk assets like Tesla, Bitcoin, and OKLO to outperforming as the market looks forward to a risk on environment.

TSLA

BTC

OKLO

RETAIL SALES

Our next crucial indicator for growth will be retail sales data, which is set to be released on Thursday. Currently, retail sales figures are performing above the long-term average.👇🏽

• Unless there's a drastic surprise the number should be acceptable to the market.
• Lower than expected Retail sales can help ease rates, while higher than expected can signal an accelerating economy with higher treasury rates.

⚠️ The big risk, is a fast rising Treasury rates will hurt the housing market. Let's remain vigilant.