Good Evening:

Markets broke an 8-week losing streak. The beginning of the week was tough, and not much has changed regarding the many risks facing markets other than inflation appears to be cooling. Despite this much-needed relief, let’s also remember that Chairman Powell said, “This is not a time for tremendously nuanced readings of inflation. We need to see inflation coming down in a convincing way. Until we do, we’ll keep going.” Inflation is still at multi-decade highs. Our Head of Research, Tom Lee, will dive into inflation and shed some light on what we can expect in terms of inflationary pressure in the next couple of months.

Notably, there appeared to be some green shoots in mega cap tech, which is incredibly essential for the overall level of the indexes, given the prodigious market caps of many of these firms. Apple has a new phone coming out. The economy is changing in major ways. For example, what port do you think has the highest dollar value of goods that pass through it? We bet your first bet wasn’t Chicago, but many high-end products are now being shipped by plane instead of by freight ship. While the logjams have been alleviating, when China’s lockdowns end, the issue of traffic jams at sea may again re-emerge. Apple sends all its products to C...

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