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The "big news" in December CPI is 59% of components are now in deflation, a leap of 800bp in a single month (50-yr avg 50%). Reason to view this as repeatable low CPIs = easing FCI = falling VIX = rising stocks.

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Wednesday
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CATALYST WATCH: FRIDAY

U Mich Inflation 1-yr is reported 1/13 at 10am ET

  • we expect inflation expectations could fall below 4% (mid-month) vs 4.4% last month, validating the accelerating leg down in inflation

The "big news" in December CPI is 59% of components are now in deflation

Ultimately, the December CPI report is a net positive, in our view, as we think investors will increasingly come to th...

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