Remember that the market is forward-looking, and economic data is backward-looking. Despite the muted inflation report, bond markets sold off hard (interest rates rose). Do bonds know something the public doesn’t?Rising rates are inflationary. This is an evolving situation that must be monitored carefully. That is, rising rates and energy outperformance are not the most appetizing recipe for higher stock prices.I’m still bullish on stocks near-term, and as I’ve explained before, tops take time. But we continue to see mounting evidence that this equities rally is maturing, and a broader pullback may be exactly what we need for the Fed to eventually ease. The good news is that tech continues to lead outside of the 1-week leadership position. If this starts changing, it would signal that the time has come to start dialing back risk within the portfolio notably.Rest assured I’ll be keeping you posted…More By This Author:What Bonds, Bitcoin, And Tesla Can Tell Us About This Market The Second Quarter Is Officially Over – Here’s What’s NextI’m A Big Biotech Bull – And You Should Be Too
