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INTRADAY ALERT: Equities over-reacting to "hot" Jan CPI. The 1Q24 top will be when "stocks sell off on good news" -- so today is not likely the top.

THIS INTRADAY ALERT IS SENT SOLELY TO CLIENTS OF FS INSIGHT

Equites are selling off >1% today ($IWM off >3%) after Jan CPI came in "hot" vs consensus with Core CPI +0.39% (vs consensus +0.30%). Is this an over-reaction? Yes. Should investors buy this dip? Yes. We think this is still too early to "call the top" for 1Q2024. Let me explain:

The bond market is selling off sharply (yields up) with 10-yr yields now 4.285%, and way up from 3.865% just a week ago. ...

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