Strategy Note /
Global

Day Trip

  • Sometimes the best thing to do is to step away, especially after Tuesday's classic buy the CPI rumor, sell the CPI news.

  • China economic data getting better & Govt has drawn a line under the property sector yet Yuan breaks 7 & stocks get hit.

  • BofA FMS suggests peak risk aversion while hi nominal growth world supports EPS & US inflation gets under 4% in Q1 23.

Jay Pelosky
Jay Pelosky

TPW Founder & Global Strategist

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TPW Advisory
16 September 2022
Published byTPW Advisory

Sometimes the best thing to do is to just step away. I hadn’t been to the beach all summer and time was running out, so I made the move and day tripped it out to one of my favorite spots, Fire Island, where I spent many a summer.

 

As such decisions usually do, it came with lots of rewards – smooth travel, fantastic weather, wonderful, cool ocean water, booming surf and near empty beach by the famous Fire Island lighthouse. The body surfing was transformative, the surgically repaired left knee held up fine & what’s not to love about a midafternoon nap on the beach?

 

A red fireball sunset as the ferry took me back to the mainland was Mother Nature’s reminder to come on back; the night was capped off by dinner with an old buddy at one of Long Island’s famous red sauce joints.

 

While I didn’t check the markets once I left the mainland, I did note on the way out that the commuter parking lots were quite full suggesting that Long Island got the back to the office memo – something that one can confirm just being in Manhattan these days with traffic back to normal and the post Labor Day buzz in the air.

 

What about markets, you say? Well, Tuesday’s CPI print was bad, not sure if it was 4% bad but it was a classic buy the rumor, sell the news on light volume event. After all, the S&P had been up the prior 4 days and the selloff, painful as it was for one day, took us back only to the levels of the prior week.