A subscriber asked Director of Subscriber Development Robert McGroarty what to expect from Wednesday’s CPI report. His answer? The outlook for inflation isn’t the biggest risk to your portfolio.
“2023 is less about inflation and more about recession risk rising,” McGroarty explains in this clip from The Macro Show, “I’m not saying inflation doesn’t matter but focus more on the earnings risk and recession on the horizon, and how that impacts real rates, the longer end of curve and your portfolio construction.”
Earnings on our radar this week: CarMax (KMX), Delta (DAL) and several major banks will all report this week. Taken together, this data will provide a more telling outlook for consumer behavior than the media hype surrounding this week’s inflation report.
Watch the full clip above.
