Well, the CPI core print was far cooler than anticipated by the market and it means that July is off the table as far as hikes are concerned. But the very muted market response indicates that the supply in the bond market is still very much a factor on people’s minds and that suppresses upward price movement in equities.
Sorry to say, we need to do nothing to the portfolio at the moment, as nothing is where we want it to be to reallocate meaningfully. But the trend to higher real rates is still intact, this report will not change that, certainly not without much more evidence, hence we can afford to remain patient and discuss in detail in video on Saturday.
