CHART OF THE DAY: Macro Tourists Fade Uncompable Base Effects → What Are You Doing?

The market doesn’t “have to be right” from an intellectual’s perspective.

The market is always right about what all of its participants believe to be true (even if something ends up not being true). As a glaring example of that, let’s look at the 2022 market expectations for Fed rate hikes:

A) Only 2 days ago that was at a new Cycle High of 6.74 hikes in 2022… and
B) Post yesterday’s US economic data #slowing reports, that fell to 6.05 hikes

Yes, that happened in a hurry. And, yes, if 2 of your Top 3 Asset Allocations are:

A) Short-term US Treasuries (SHY) … and
B) Gold (GLD)

You’re going to get paid on that quick change in market expectations this morning.