TL;DR

Stocks rallied on a “good” CPI report, but it actually signals a weakening consumer and impending recession. Beware the dead cat bounce—the real pain is yet to come.

Story

Wall Street celebrated a “better than expected” CPI report, sending stocks soaring. But beneath the surface, a chilling truth lurks: consumers are broke. Like a house of cards built on debt, the economy teeters.

Airline fares down 4%? Not vacation vibes, but fear of empty wallets. New car prices dipped 0.1%? More like, “Who can afford a car when eggs cost $5?”

This isn’t celebration-worthy; it’s an SOS. Consumers, crushed by inflation, are cutting back. Businesses, facing shrinking demand, can’t hike prices further. This whispers of recession, not recovery. Remember 2008? The warning signs are eerily similar.

Jerome Powell’s words echo in my ears: “…some pain to households and businesses.” Pain? That’s an understatement. This market rally? A deceptive dead cat bounce before the real plunge.

‣ CPI: Consumer Price Index, tracks inflation. ‣ Dead cat bounce: A temporary market rise during a downtrend. ‣ Recession: Two or more consecutive quarters of negative GDP growth.

Advice

Don’t be fooled by market rallies during an economic downturn. Look past the headlines and examine the underlying data. If consumers are struggling, the economy is too.

Source

https://www.reddit.com/r/wallstreetbets/comments/1j9r1p5/cpi_report_reinforces_that_economy_is_weak/