There was a welcome relief in the inflation story, as June CPI fell 0.4% from the previous month while core inflation was flat. YoY core CPI was at 2.6%, signaling that reduced inflation risk could lead to tamer rates.
However, markets have started to price in higher rates even with the new Fed chair notifying Congress that the Committee will do less public signaling and more watching.
Even with the Clarity Act stalled as Democrats demand more restrictions, crypto performance was modest as Bitcoin was roughly flat while Ethereum rose 2.7%.
High margin debt has generally signaled muted returns for the short term. Margin debt has reached near 4.5%, which is an all-time high.
Numana will look to reduce its current margin balance from ~$310k to ~$250k. Although this figure is still elevated, there will also be a shift towards low beta stocks such as REITs and infrastructure.
