If you have a crash helmet, you might want to put it on. The week ahead could potentially be one of the most volatile all year long … and serve as a fitting end to 2022.
Tomorrow, new Consumer Price Index (CPI) numbers will be released. Investors are hoping … praying … for any indication that inflation might be easing because the sooner we see a drop there, the sooner the Federal Reserve can stop thrashing the market with interest rate hikes … or at least slow them down.
But if last week’s Producer Price Index (PPI) numbers are any indication, we should be prepared for the worst. They came in higher than expected, 7.8% year over year. Higher PPI readings tend to translate into higher CPI readings, so brace yourself. If signs point to more pain from the Fed, it’s not likely to be a good day in the market.
However, the CPI report is just the appetizer. The main course comes the following day when the Fed announces its next interest rate decision. The prevailing expectation is a 0.50% hike, the smallest since the raises started early in 2022, as Powell all but telegraphed it in his recent comments. It’s not guaranteed, though … and the rate markets are still pricing in a 23% chance of a 0.75% hike.
(Click here to view larger image.)
Either way, it promises to be a wild ride!
Our team is watching this, of course, and is already looking for ways to profit, regardless of the outcome. And speaking of that…
A Sneak Peek at This Week’s Insights
Tomorrow, Ian King will write you about what’s quickly becoming a marquis theme of 2023: the fall of globalization. I covered this in our inaugural issue, but Ian is diving deep into the investment implications … including one specific sector that could rocket higher in the fallout of what’s to come.
On Wednesday, Charles Mizrahi is taking aim at a pandemic-bubble darling that he called to be a zero when it was near its highs. His call was controversial then, but this name is down considerably since … and he’ll show you how you can spot similar mispricing situations in the market for yourself.
Mike Carr is lending us his trademark technical expertise for a look at the energy markets on Thursday. This is a huge theme for us at Banyan Hill right now, with many of our experts calling for huge moves in energy stocks over the next several months. If you want to capture the biggest swings of those moves, make sure you tune in.
And on Friday, Adam O’Dell will follow up on last week’s dispatch about his Green Zone Ratings system. Like Mike, he has his sights squarely set on energy stocks … and is convinced we’re in the first innings of a roaring bull market that few see coming.
But before we get to any of those insights, we have something huge in store for you… Something you’ve definitely never seen before.
Stay Tuned for The Banyan Edge Podcast
As you read this, I’m sitting down with Ian King, Amber Lancaster, Charles Mizrahi, Michael Carr and Adam O’Dell in the first-ever episode of The Banyan Edge Podcast.
I don’t want to spoil what we’re discussing … but let’s just say it has huge implications for what lies ahead as we close out 2022 … and in one particular market that several of our experts believe will dominate 2023.
We’ll send along the first episode this afternoon. And when you do get it, we’d love if you gave it a listen (or a watch!) and send us your feedback to BanyanEdge@BanyanHill.com.
While you’re there, shoot us any questions on your mind. Each podcast will have a Q&A section where we’ll field your questions, so keep them coming!
Chief Editor, The Banyan Edge