Folks, don’t see the headline saying “below expectations” and assume good news is here. The real sting is what’s lurking beneath the surface.
Take a look at the data: PPI rose 6.5% year over year, just a hair below the 6.6% expected. But pay attention to what comes next: the annual increase still hit a nearly four-year high! What does that tell us? Inflation isn’t dead—it’s still raging at elevated levels.
The market’s reaction is brutally honest. The odds of a 25-basis-point rate hike in December jumped straight from 86% to 91%. Sure, people breathed a sigh of relief, thinking they’d dodged a fatal 50-basis-point blow from Waller. But Bank of America’s forecast is far more grim: three more hikes—in December 2026, January 2027, and March 2027!
That’s the slow, painful squeeze. The Fed has no intention of changing course anytime soon, and the high-rate noose will keep tightening around everyone’s neck.
The impact on our markets is crystal clear. If the Fed won’t budge, Treasury yields won’t come down, and the cost of capital worldwide will remain sky-high. Hot money sitting on the sidelines is all flowing into Treasuries for the interest. Who’s left to buy Bitcoin? BTC is struggling below $75,000, while also being weighed down by a black-swan shock involving an Nvidia executive. There’s no sign of a short-term reversal at all.
So don’t be fooled by this superficial “good news” and rush to buy the dip. The market right now is a macro meat grinder, and liquidity is drying up fast.
If you’re holding low-cost positions, hold on to your core holdings. If you’re out of the market, keep your wallet firmly shut. Let this wave of rate-hike panic run its course; once the market has fallen into a pit of true despair, we’ll bring our cash in and scoop up bargains. Making a move now is just handing yourself over to the slaughter. Stay steady!
Take a look at the data: PPI rose 6.5% year over year, just a hair below the 6.6% expected. But pay attention to what comes next: the annual increase still hit a nearly four-year high! What does that tell us? Inflation isn’t dead—it’s still raging at elevated levels.
The market’s reaction is brutally honest. The odds of a 25-basis-point rate hike in December jumped straight from 86% to 91%. Sure, people breathed a sigh of relief, thinking they’d dodged a fatal 50-basis-point blow from Waller. But Bank of America’s forecast is far more grim: three more hikes—in December 2026, January 2027, and March 2027!
That’s the slow, painful squeeze. The Fed has no intention of changing course anytime soon, and the high-rate noose will keep tightening around everyone’s neck.
The impact on our markets is crystal clear. If the Fed won’t budge, Treasury yields won’t come down, and the cost of capital worldwide will remain sky-high. Hot money sitting on the sidelines is all flowing into Treasuries for the interest. Who’s left to buy Bitcoin? BTC is struggling below $75,000, while also being weighed down by a black-swan shock involving an Nvidia executive. There’s no sign of a short-term reversal at all.
So don’t be fooled by this superficial “good news” and rush to buy the dip. The market right now is a macro meat grinder, and liquidity is drying up fast.
If you’re holding low-cost positions, hold on to your core holdings. If you’re out of the market, keep your wallet firmly shut. Let this wave of rate-hike panic run its course; once the market has fallen into a pit of true despair, we’ll bring our cash in and scoop up bargains. Making a move now is just handing yourself over to the slaughter. Stay steady!