Why equities could go to all-time highs

The November CPI report is releasing this week, and oil has been selling off. Last month, oil dropped 7 percent, a big part of the CPI.

Author

Christopher Martinez
December 10, 2023

(Not Financial Advice)

Table of contents:

  1. CPI

  2. Yield curve

CPI

The November CPI report is releasing this week, and oil has been selling off. Last month, oil dropped 7 percent, a big part of the CPI. We do expect a bounce in oil from here, but in terms of CPI, if it comes back lower than expected, expect to see all-time highs in equities, assuming the Fed doesn’t increase interest rates this week.

Yield curve


The yield curve has been rising again as investors are predicting the previous interest rate hike to be the last one. If the Fed cuts anytime soon, the yield curve will go back up, credit will be more accessible, and more debt will be issued. This will cause an even wider wealth gap and more political tensions.