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Thoughts on the latest inflation data and its impact on central bank stance
The latest CPI numbers came in hotter than expected, definitely putting more pressure on central banks to maintain their hawkish tone, which is making me reconsider my long bias on certain growth assets and perhaps look more closely at defensive sectors.
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Yeah, that CPI print was definitely a surprise. I'm wondering if the market has already priced in most of that hawkishness, or if we're in for more volatility as central banks react. Are you thinking purely defensives, or specific sub-sectors?