Fed trader Chaim Siegel talks about fundamental and technical bullishness. The discussion focuses on CPI perfect numbers, Fed hiking, fighting inflation, and bonds. Siegel is bullish for 2024. The podcast explores the impact of inflation on the market and Fed's quantitative tightening.
Consider both fundamentals and technical indicators for bullish market outlook in 2023.
Fed's caution on rate hikes due to inflation and gradual growth support through quantitative tightening manipulation.
Deep dives
Market Outlook Based on Fundamentals and Technicals
The speaker emphasizes the importance of considering fundamentals like earnings and economic performance, alongside technical indicators, when assessing the market outlook. By analyzing data and following market trends, they became bullish on the market for 2023, especially noting strong job numbers towards the end of the previous year. Despite potential geopolitical challenges, the speaker remains optimistic about the market due to positive fundamentals and bullish market actions.
Effect of CPI and Fed's Quantitative Tightening on Market Trends
The discussion delves into the impact of CPI figures and the Federal Reserve's quantitative tightening policies on market trends. A CPI reading of 0.3 is viewed as favorable, keeping the Fed cautious about hiking rates due to inflation. The decision to slow quantitative tightening by the Fed is seen as a support for asset prices, particularly in fixed income securities. This manipulation is expected to foster growth and allow inflation to rise gradually, indicating a market environment where modest inflation is beneficial, but higher CPI figures could prompt a negative market reaction.
Fed Trader Chaim Siegel discusses fundamental and technical bullishness (0:35). CPI perfect numbers, Fed hiking, fighting inflation and bonds (4:00). This is an abridged conversation from a recent Investing Experts podcast.
Sign up for our daily newsletter here and for full access to analyst ratings, stock quant scores, dividend grades, subscribe to Seeking Alpha Premium at seekingalpha.com/subscriptions.