Knee-Jerk Reaction in the Stock Market

Time to add duration to the portfolio while fading this stock market rebound

Highlights

• A major disinflationary/deflationary impulse is coming…

• … global freight rates are plunging and deflating real-time rents will filter through to the CPI with their typical lag

• Time to add duration to the portfolio while fading this stock market rebound (it’s all technical!)

• Contracting monetary and credit aggregates are yet another recession signal