Big Mac Inflation Is Real

I'm mostly just joking about the Big Mac indicator because it's hilarious.

I love that the Federal Reserve Bank of St. Louis is taking time out of their day to put out this kind of quality work.

But the publicly traded markets are suggesting the exact same thing.

Look at Gasoline looking to complete this multi-year base.

This is all happening as the bond market is pricing in the same thing - higher inflation:

TIPS are Inflation Protected Treasury Securities. So when you calculate a ratio of TIPS vs Nominal Yielding Treasuries, you get a good look at what the bond market is pricing in for inflation.

Do you actually trust your government's data?

Do you really trust the pretty lady on basic cable?

Or do you trust the bond market?

I'll take the latter all day.

Besides, you're seeing it in the stock market too!

The Dow just closed at new 52-week lows priced in Real Money.

And you're seeing historic extremes in the dislocation between the Nasdaq Composite Index and the stocks themselves in the index.

On Thursday the Nasdaq closed at a new all-time high. But there just weren't any stocks making new highs, because so many have simply stopped going up in price over the past few months.

This chart says it all:

The deterioration we've been seeing for most of the year continues.

We'll talk about this further on Wednesday night. Make sure to Register Here for our Mid-Month Video Conference Call.

We're expecting this messy market to continue and implementing more Delta Neutral strategies these days.

The Volatility Index is at the highest levels since October. But that's just for the S&P500. When you go one by one and look at the implied volatility for individual stocks, you'll see that volatility has been picking up since February.

As investors, it's up to us to adapt to market conditions.

This year is NOT last year. I've been saying this for months.

You're just seeing more and more evidence that 2024 is NOT 2023. But the evidence has already been piling up for a while.

We'll discuss Wednesday exactly what we're doing about it and how we want to make the most money in Q2.

There's a lot of money to be made, especially when most investors are this offsides.

ASC Premium Members make sure to Register here.

We'll get going LIVE @ 6PM ET Wednesday April 17th.

If you're not already a Premium Member of ASC you can sign up here RISK FREE and join us this Wednesday.

See you in there!

JC