Pivoting from Inflation to Growth Fears [VIDEO]

Jordi Visser

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In this latest installment of Real-Time with Jordi Visser, Jordi takes us through the current market conditions as the S&P 500 closes down for the 6th week in a row. Jordi believes that we are on the brink of an important inflection point in the Fed and inflation-driven market where now fears about growth will begin to shift the dynamic in markets.


Key Takeaways:

  • Consumer net worth is decreasing significantly with both stocks and bonds down on the year. Jordi highlights that we have given up about 75% of last year’s net worth gains based on his proxy index. With falling asset prices and gas at the pump at new highs, he suggests that growth will begin to slow more than expected which will impact Fed tightening expectations.
  • Jordi explains his Risk/Grow Index constituents and why he believes we are going to see a significant growth slowdown. He believes this has more to do with asset changes than the jobs.
  • We are seeing a shift from inflation-driving sentiment to market fears over whether the economy can grow in the given environment.
  • Jordi highlights the shift from Beta to Quality and why a changing factor regime is relevant for Institute for Supply Chain Management (ISM) numbers.

About these videos: Our market videos seek to provide a data-focused interpretation of the market's most critical developments. Real-Time with Jordi Visser is a recurring series produced by our President and CIO based on his macro views. The purpose of his series is to isolate macroeconomic indicators (“green marbles”) that are telling the true story of the market, rather than relying on the narratives or stories often portrayed as news. Jordi is a unique thinker and tends to publish these videos during market dislocations/regime shifts when he sees areas where his views differ from consensus sentiment.