Markets are currently facing “tectonic risks”
The latest Sevens Report issued a warning, stating that markets are currently facing “tectonic risks” that could pose significant threats over time.
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The latest Sevens Report issued a warning, stating that markets are currently facing “tectonic risks” that could pose significant threats over time.
Tom Essaye, founder of Sevens Report Research – said that if Wednesday’s CPI inflation report came in weaker than expected and left the door open to a half-percentage-point reduction on Sept. 18, that would be “better for markets” and “generally welcome” news.
The real risk, according to Sevens, is that the Fed could fall behind the curve as real interest rates continue to rise.
Tom Essaye, president of Sevens Report Research, joins BNN Bloomberg to discuss the markets and discusses top risks that tech leadership poses to market stability.
Wednesday’s CPI could be the deciding factor in whether the Fed decides to cut 50 bps next week or 25 bps, said Tom Essaye, founder of Sevens Report Research.
Investors were hoping overall CPI would be much closer to 2%, instead of the 2.5% that was reported, Tom Essaye founder of Sevens Report Research told Barron’s.
The GulfCoast is where roughly half of the nation’s refined products are produced and a good portion of crude is lifted from the ground, analysts at Sevens Report Research wrote.
Value” outperformed “growth” by two percentage points in the U.S. stock market’s slump last week, with value equities still “near all-time highs while a downtrend has emerged” in the growth category, said Tyler Richey, a chartered market technician at Sevens Report.
This market remains vulnerable to negative shocks on growth, Fed rate cuts, inflation, and earnings, according to the latest Sevens Report Research.
“We’re seeing mostly technical dip-buying,” said Tom Essaye at The Sevens Report. “Economic growth is undoubtedly and clearly losing momentum, but a soft landing remains more likely than a hard landing. This week focus turns back to inflation.”
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