Central Markets by Robert Lloyd, CFA

The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the  information cannot be guaranteed. All opinions and outlooks are subject to change.

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Why won't the bond market reflect 8% inflation?



One reason is because the market thinks inflation will peak soon.


We have another important inflation data point coming Friday, but it was the May 25th news on core personal consumption expenditures (Core PCE inflation) that helped stop the market decline. Core PCE indicates a possible peak and decline in this important data series (important because the Fed watches it closely).





Inflation may fade as stimulus is withdrawn, interest rates rise, demand falls, and the economy slows down.


However, powerful behavioral inflation has been unleashed in wages, rents, housing, energy and food. War and supply disruptions aren't helping either.


Robert Lloyd, CFA®

Chief Investment Officer

Lloyds Intrepid Wealth Management

Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.


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