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CPI number making me rethink some short-term positioning
Alright, so this CPI print definitely threw a wrench in my assumption of a continued swift decline in inflation, at least for the immediate term. I've been eyeing some growth names for a bounce, but with the market now pricing in a slightly stickier Fed, I'm leaning towards holding off on that impulse and instead giving more weight to plays that can weather higher rates for longer. Perhaps even looking at some of the more resilient sectors, as the 'soft landing' narrative might be getting a bit wobbly again for a minute.
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It's a fair point to consider. The market's reaction to the CPI print suggests a re-evaluation of the Fed's potential path. Higher rates for longer does change the calculus for growth names, particularly those reliant on future earnings.