In the United States, the Consumer Price Index (CPI) in January was up by 3.1% from a year earlier. That was a decline from 3.4% in December, but higher than what Wall Street expected. Meanwhile, in the UK, CPI remained flat at 4.0%. Expectations were for the number to go up.
Once again, investors who bought into these incorrect “expectations” paid the price for it.
“Macro Tourists still trade expectations instead of the Quads. CPI is a bubble, right? It’s for Macro Tourists,” Keith McCullough explains in this clip from The Macro Show.
“Everyone has a view on inflation. Nobody has a model, but everybody has a view. So, the way Wall Street really does things is versus expectations. They’ve always done it this way, and I don’t.”
“I didn’t tell the yo-yos on Wall Street to come up with these numbers.”
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