Wednesday, 11 December 2024

CPI and X

Wednesday morning updates
 
   
     
   
 
DECEMBER 11, 2024
   

Hey y’all,

Well, with this morning’s “as expected” CPI print, the Fed Rate Cut is all but settled.

Fully 96% of traders are now pricing in a .25% rate cut to their expectations. Interestingly, no one is anticipating a larger rate cut than that.

 
 

This is generally a good thing. We want the Fed to be predictable. 

Market shocks don’t happen because of changes per se, they happen because of unexpected changes. The market hates uncertainty. 

As long as the Fed stays predictable, the markets should keep chugging along.

It should be a very fun market to trade right now. There’s a lot of opportunity across a lot of different sectors.

One stock that isn’t feeling the love is U.S. Steel (X), which plummeted yesterday with news that President Biden does plan to formally block any sale to Nippon Steel in Japan. 

 
 

This is an interesting controversy, but one both President Biden and incoming President Trump agree on.

I’m not sure where I stand…

On the one hand, I certainly see why “keeping U.S. Steel in the U.S.” makes some sense…

On the other hand, Nippon Steel claims to want to revitalize the company within America — and it’s certainly struggling on its own right now.

I am usually all for the free market and hoping that the best-run companies win out, so I’m conflicted here. 

I’ll post about it over in Telegram. Let me know your thoughts! 

To your prosperity,

Stephen Ground
Editor-in-Chief, ProsperityPub


P.S.: Tomorrow, I’m gonna be driving down to Tampa, FL to meet with Jack Carter, because of a very special portfolio he sent me that could help YOU simplify your trading. Find out more right here.

 
   
 

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