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Inflation showing decisive “break” in pattern. Rally strengthening = focus on lower quality. 6 names. 2H rally intact.

The rally seen in equity markets post-CPI has been largely met with skepticism. This is essentially true of the gains seen over the past week and past month. Below is a comment from a sellside strategist and is emblematic of the pushback we get from clients (keep in mind, the sellside often mirrors what institutional investors broadly are saying).

As to why, we think much of this is explained by an anchored cognitive bias. The following contributes to investors seeing ...

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