JPMorgan’s Marko Kolanovic says that now is the time to buy the dip in commodities because the demand is likely to remain strong moving forward if a recession doesn’t materialize. “Given diminishing risks of a more negative shift in behavior, low positioning in risky assets and widespread negativity in sentiment, as well as robust nominal GDP and revenue growth, risky assets have seen a recovery. With commodities lagging other risky assets, we shift some of our risk allocation from equities to commodities,” he said. In other news, the consumer price index rose 8.5% in July, due in part to a large drop in gas prices. Some experts say it could help take some of the pressure off of the Fed, which has voiced its commitment to being more aggressive with interest rate hikes.

 

Business Insider/Matthew Fox
JPMorgan’s long-time bull says now is the time to sell stocks to buy commodities after recent recovery

Long-time equity bull Marko Kolanovic of JPMorgan thinks now is a good time to take advantage of the ongoing recovery in the stock market by trimming exposure to stocks and shifting those proceeds to commodities, according to a Monday note.

“Given diminishing risks of a more negative shift in behavior, low positioning in risky assets and widespread negativity in sentiment, as well as robust nominal GDP and revenue growth, risky assets have seen a recovery. With commodities lagging other risky assets, we shift some of our risk allocation from equities to commodities,” Kolanovic said.

Continue reading, here.

 

CNBC/Jeff Cox
Consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit

Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices.

On a monthly basis, prices were flat as energy prices broadly declined 4.6% and gasoline fell 7.7%. That offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs.

Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly.

You can read the full article, here.

 

Yahoo Finance/Brian Cheung
The ‘rude awakening’ for bankruptcies Elon Musk warned about hasn’t happened yet: Morning Brief

In May, Elon Musk tweeted that a recession was coming, and that “some bankruptcies need to happen.”

But this “rude awakening” the billionaire warned about is yet to surface in Corporate America.

Despite the erosion of wage gains by high inflation and an ugly stock market, Corporate America has yet to show a substantial uptick in bankruptcies, according to recent data from S&P Global Market Intelligence.

Keep reading, here.

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