“It doesn’t mean the economy’s rolling over”
Tom Essaye Interviewed by Barron’s
Stocks Are in a Holding Pattern. It’s All About Inflation Data.
Sevens Report Research’s Tom Essaye told Barron’s in a phone interview that recent economic data, including durable goods and retail sales, have come in softer than expected.
“It doesn’t mean the economy’s rolling over,” he says. “But for a market that is priced for zero slowdown whatsoever, that is the risk that I think people need to watch. About the most surprising thing that I feel could happen to this market right now is that growth suddenly slows.”
“They’re behaving for now, but if you start seeing the 10-year climb far above 4.25%, I think that begins to become a headwind on the market,” Essaye says. “Until we get that inflation data, you kind of got markets in a bit of a holding pattern.”
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