Market Update: Magnificent 7 Melt-Up? US Inflation Still Falling.

💬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐔𝐩𝐝𝐚𝐭𝐞

Macroeconomic data powered investor sentiment last week with smaller companies ($IWM) rallying strongly. Chapters in the video include:

0:00 - Intro
0:08 - US consumer inflation falls again driving markets higher
1:17 - PPI (a leading inflation indicator) surprises by falling -0.5%
2:06 - US retail sales and jobless claims
2:51 - The net effect of this data: a rally in bonds and stocks
3:35 - Large US Companies vs Small US Companies
4:00 - Magnificent 7 Melt-up? Concerns and opportunities
7:18 - The week ahead: US Thanksgiving will keep things quiet

ᴍᴀᴄʀᴏ ʜɪɢʜʟɪɢʜᴛꜱ

Both leading and lagging inflation indicators in the US show good progress in the fight against inflation. But of course, this also implies a slowdown in growth
However, US retail sales were okay given the current circumstances. Jobless claims ticked up more than expected and seem to be trending upwards
UK consumer inflation surprised to the downsized
EU region inflation came in as expected and has broken the 3% threshold to fall to 2.9%

ᴘᴏʀᴛꜰᴏʟɪᴏ

I've started pairing back positions in big tech closing out my $GOOG position for now. I might dial back my $AMZN positions too. I will likely keep adding to my bond positions too.

𝐈𝐧 𝐒𝐮𝐦𝐦𝐚𝐫𝐲

Inflation keeps falling which is great but the cost of that battle is beginning to show in several economic metrics. The incredible rally in the mega-caps feels risky to me but doesn't necessarily signal a collapse in their stock prices. One of the safest places to be in my opinion is bonds and relatively cheap smaller-cap companies that've demonstrated multi-year success.

Disclaimer: This is my analysis and opinion, not investment advice. I might own some of the stocks and other assets mentioned, please check my etoro portfolio to find out.