CHART OF THE DAY: Inflation Deceleration

12/14/21 08:23AM EST

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. 

After 6 straight quarters of US #InflationAccelerating:

A) 5 out of 6 quarters were #Quad2 (i.e. the healthy kind of nominal inflation and real GROWTH #accelerating)… and
B) 1 out of 6 quarters was #Quad3 in Q3 of 2021, which we call Stagflation, or real GROWTH #slowing

In 10yr UST Bond Yield terms:

A) That’s why the UST 10yr Yield put in its Cycle Peak during the fastest pace of Real GROWTH (Q2 of 2021)… and
B) Fell as real GROWTH #slowed into the lows of Q3, then re-tested its Cycle Peak, twice, in OCT-NOV 2021

And that, I think, was it. That’s why I bought 7-10yr Bonds (IEF) last week.

CHART OF THE DAY: Inflation Deceleration - idc

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