The market is in front of recession fears.

What am I thinking and doing right now

Important: this is not investment advice. Consult a licensed financial advisor before making any investment decision.

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Hi!

Last week was very important for the market as the new CPI report was released.

I wanted to wait a few days before commenting.

Below is my take on the markets and what to expect in the next few months.

1. The Macro

The last inflation data released last week brought inflation (Year over Year or inflation over the last 12 months) at 7.1%, better than the 7.3 expected.

Inflation is declining at a fast pace, and at this point, it looks like everybody agrees that it will keep declining over the next months.

Why it matters? This is the first roadblock that needed to be removed and it looks like is under control.

What now? Well, what is not known is when this trend will hit a wall and inflation may become sticky.

So the trend is right, the pace is fast but the roadblock is still partially on the table.

The FED is also mostly concerned right now about avoiding inflation expectations to…