Jan CPI (Wed) likely "calibrates" inflation views back to "falling towards 2%" = positive equity catalyst. Despite chop, we are buying the dip.

So far in 2025, equity markets have proven to be resilient, affirming that "buy the dip" remains the regime. There have been many "tape bombs" so far in 2024 (DeepSeek R1 and tariff headlines) but the resulting selling has been shallow. To us, this indicates that investors have already substantially de-risked, best evidenced by the collapse of AAII "net bulls" during that mid-Dec to mid-Jan chop.

We view Jan Core CPI release (Wed am) as an important "re-calibration" or course correction...

So far in 2025, equity markets have proven to be resilient, affirming that "buy the dip" remains the regime. There have been many "tape bombs" so far in 2024 (DeepSeek R1 and tariff headlines) but the resulting selling has been shallow. To us, this indicates that investors have already substantially de-risked, best evidenced by the collapse of AAII "net bulls" during that mid-Dec to mid-Jan chop.

We view Jan Core CPI release (Wed am) as an important "re-calibration" or course correction...
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