Fade the Post Rate Hike Rally

Fade the Post Rate Hike Rally
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Michael Pento
Updated:
Commentary 

The recent stock market rally is a trap. This is because Wall Street is vastly underestimating how hawkish the Federal Reserve will have to get in order to fight inflation, and how much weaker earnings and GDP growth will become as a result. The fact is Federal Reserve Chairman Jerome Powell has finally become enlightened to the inflation crisis engendered by his own hand. Powell’s inflation epiphany is mainly the result of his observation that shelter costs are soaring out of control. He now realizes that he will have to pop the housing bubble in order to vanquish inflation.

Michael Pento
Michael Pento
Author
Michael Pento is the President and Founder of Pento Portfolio Strategies. He produces the weekly podcast called “The Mid-week Reality Check.” He's also the author of the book “The Coming Bond Market Collapse.”
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