Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Is This Why FANG Stocks Rebounded This Morning?

Courtesy of ZeroHedge. View original post here.

Friday saw the FANG (Growth) dream briefly crushed, and that pain continued through the opening this morning. But then something happened that sent the Nasdaq surging

Perhaps this is why…

U.S. consumer inflation expectations declined last month to near the lowest levels in the four-year history of a survey conducted by the Federal Reserve Bank of New York. As Bloomberg reports, the median respondent to the May survey of consumers reported an expected inflation rate of 2.47 percent three years from now, down from 2.91 percent in April and just above the 2.45 percent low recorded in January 2016 in a series that goes back to 2013.

The data may add to concerns over a recent decline in U.S. inflation, which has led investors to take a skeptical view toward additional Fed interest-rate increases.

And as the chart above shows, Value-over-Growth has been tracking inflation expectations lower for years (i.e. as inflation expectations tumble, investors are willing to bid for anything that is ‘growing’) and thus – this morning’s print reinforced the longer-term trend and sparked a rebound bid for FANG et al…


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!