Wholesale prices jumped to .9% in July, more than tripling expectations. The number lowered expectations of a shoo-in rate cut in September, and reignited debate over whether tariffs are inflationary, or simply a one-time pass-through price increase.
Political banter over the government’s statistics-gathering process continued.
Long-term treasuries held firm while short-term, 1- and 2-Year bonds moved higher with the 1-Year nearing 4%.
But with the odds of a September rate cut still above 90% and the 10-Year Treasury sitting stagnant below 4.3%, today’s short-term noise appears unlikely to stop the blistering rally in small caps.
Tweedle is ignoring the everyday price jitters on ATYR as erratic price volatility is likely to remain until Efzofitimod Phase 3 data drops sometime in the back half of September. Favorable news could rocket the price above $25. Negative news could send the stock plummeting below $1.
Regardless, the day-to-day price fluctuations leading up to the event are irrelevant.
The price action of BRK-B, however, is something worth following as defensive names like Berkshire are experiencing a rebound in the midst of sky-high valuations, a shit ton of margin in the market and the return-to-crap trade of meme stocks, bankrupt companies and high-risk/high-reward retail “investments.”
For reference, today’s market is one of the most expensive in history. Beware.
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