Tuesday’s CPI data appears to have overshot some expectations on Wall Street and stock futures are selling off. The upshot: an overshoot could dash hopes of a May rate cut and curtail the S&P 500’s
SPX
waltz with 5,000. The day is young. Yet with Nvidia
NVDA,
+0.16%
up another 47% so far this year, and AI driving a frenzy for companies such as ARM
ARM,
+29.30%,
and any others that get near it, not standing in front of the ChatGPT train seems wise for now. Indeed, Bank of America’s latest fund manager survey shows no letup in the tech-stock buying.
Read: Arm’s frenzied stock rally continues as AI chase trumps valuation. What might take this market down eventually? Our call of the day from former hedge-fund manager Russell Clark points to Japan, an island nation whose central bank is one of the last holdouts of loose monetary policy. Note, Clark bailed on his perma bear RC Global Fund back in 2021 after wrongly betting against stocks for much of a decade. But he’s got a whole theory on why Japan matters so much. In his substack post, Clark argues that the real bear-market trigger will come when the Bank of Japan ends quantitative easing. For starters, he argues we’re in a “pro-labor world” where a few things should be playing out: higher wages and lower jobless levels and interest rates higher than expected. Lining up with his expectations, real assets started to surge in late 2023 when the Fed started to go dovish, and the yield curve began to steepen. From that point, not every …
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SPX
waltz with 5,000. The day is young. Yet with Nvidia
NVDA,
+0.16%
up another 47% so far this year, and AI driving a frenzy for companies such as ARM
ARM,
+29.30%,
and any others that get near it, not standing in front of the ChatGPT train seems wise for now. Indeed, Bank of America’s latest fund manager survey shows no letup in the tech-stock buying.
Read: Arm’s frenzied stock rally continues as AI chase trumps valuation. What might take this market down eventually? Our call of the day from former hedge-fund manager Russell Clark points to Japan, an island nation whose central bank is one of the last holdouts of loose monetary policy. Note, Clark bailed on his perma bear RC Global Fund back in 2021 after wrongly betting against stocks for much of a decade. But he’s got a whole theory on why Japan matters so much. In his substack post, Clark argues that the real bear-market trigger will come when the Bank of Japan ends quantitative easing. For starters, he argues we’re in a “pro-labor world” where a few things should be playing out: higher wages and lower jobless levels and interest rates higher than expected. Lining up with his expectations, real assets started to surge in late 2023 when the Fed started to go dovish, and the yield curve began to steepen. From that point, not every …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]