Markets ripped off the back of a 2 page MoU between the US and Iran that reopened the Strait of Hormuz. The FOMC meeting had its first session under new chair Kevin Warsh, and he sounded even more hawkish than Mr Powell. SpaceX rocketed ahead 42% in its first (almost) full week of life. That's insane, but go ahead – load up! Friday was a holiday in the US.

"....That being said, let’s motor on to what really matters in the coming days – May CPI in the U.S. (released yesterday), upcoming central bank meetings, the SpaceX IPO which is on the launch pad (no pun intended), and U.S. social security."

Stocks were fine much of the week due to the ongoing "to the moon" A.I. narrative and rampant momentum buying. However, things came to a screeching halt on Friday, once the "adults in the room" (i.e. bond investors) started to run for cover with inflation soaring higher and becoming ever-more entrenched. Friday was firmly risk off, and now the question is what will happen next week? What if buy-the-dip investors go on strike? I don't even want to imagine that!!

Global stocks and bonds continued to spiral down as the war in the Middle East continues with no end in sight. In this update, I discuss the Fed's dilemma in a stagflation scenario, and how oil prices are likely to affect both headline and cor inflation.

This is a short article about the K-shaped economy, driven by persistently high inflation and exacerbated by the errant "One, Big Beautiful Bill".

US Treasury yields are stuck, with the 10y UST yielding just north of 4%, What might be coming next? This article presents the factors that will influence the next gap up or down in UST yields.

It is fashionable to espouse the end of the US dollar as the leading global reserve currency, but this will not occur anytime soon.

Don't look to fundamentals to explain equity prices today – look to attitudes embedded in acronyms. And don't forget the super-easy Fed!

The bond market looks to be doing the Fed's dirty work, sending short term yields to post-pandemic highs. Is the Fed being too methodical?