While I agree that the BOJ is going to maintain easy money forever, maybe getting back to 0.00% sometime this year, there is exactly zero evidence that inflation in the US is heading down significantly from here. today's PPI simply adds to the data showing we have likely bottomed at the 3.0% - 3.5% level. there is no reason for the Fed to cut rates if inflation remains at 3.5% or more. that may not matter for some equity sectors, but it is certainly not the narrative that is current and I suspect it will have some pretty dire consequences for at least some of the high flyers.
While I agree that the BOJ is going to maintain easy money forever, maybe getting back to 0.00% sometime this year, there is exactly zero evidence that inflation in the US is heading down significantly from here. today's PPI simply adds to the data showing we have likely bottomed at the 3.0% - 3.5% level. there is no reason for the Fed to cut rates if inflation remains at 3.5% or more. that may not matter for some equity sectors, but it is certainly not the narrative that is current and I suspect it will have some pretty dire consequences for at least some of the high flyers.