Quote (ofthevoid @ Mar 14 2023 11:10am)
Market rallying because with the bank failures, only a 25bp is being priced in March rather than the expected 50bp. This flash crash in banks shows the vulnerability of our financial system due to rapid IR hikes, so market thinks Fed will pause to not cause more damage, as such risk assets are rallying. Technology companies rallying hard, banks are rebounding but doubt they recoup all their losses any time soon.
This event might be the catalyst for the 'pivot'.
If they stop rate hikes, like I said before, should probably expect higher inflation for years to come.
bring on the $36 Big Mac by 2040