In the most recent release, the U.S. CPI hit 6.8%, far above the market expectation of 6.3%. This explosive surge in the data has sparked concerns in the market about inflation expectations. From a data perspective, the elevated CPI is mainly driven by rising energy and food prices, with price increases of 32.6% and 10.4%, respectively. On interest rates, the Federal Reserve has raised rates three times in a row and lifted the target range for the federal funds rate to 1.5%–1.75%. However, this has not effectively curbed inflation; instead, it has made the market more worried about the future path of interest rates. Looking at ETF flows, over the past month, global equity ETFs saw net outflows of $71.0 billion, a record high, including net outflows of $46.0 billion from U.S. equity ETFs. This suggests that investors’ confidence in the stock market has weakened. In on-chain data, holdings of cryptocurrencies such as Bitcoin have declined, which may reflect the market’s concerns about inflation. In summary, the explosive growth in U.S. CPI data has indeed led to inflation expectations getting out of control, but it also presents investors with new investment opportunities. In the current market environment, investors should focus on the following issues: 1. Whether the Federal Reserve will raise rates further to curb in

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