High for even longer.

Hey, Peter Navarro here with this week's market wrap for the week ending February 16,

2024.

The most remarkable thing about this week is what almost happened but ultimately didn't happen which is to say a market crash.

Here's the story.

Last Tuesday the Consumer Price Index came out unexpectedly hot.

Consumer prices ran over 3% from a year earlier,

significantly above expectations.

As you can see from the chart below,

podcast listeners, please go to the sub-stack to see this if you'd like.

The S&B 500 promptly tanked.

Yet, that was just a one one day wonder as the market rebounded sharply on Valentine's Day and finished

above the 5,000 threshold for the week and only down 0.4% after five straight weekly gains.

The crystal clear implication of the Hot Inflation Report is that the Federal Reserve

will not just keep rates high for longer.

It is likely that rates will be higher for even longer.

Once again, however, the S&B 500 has demonstrated great resilience, which as I continue to maintain

is not the result of a strong underlying economy, but rather the inexorable upward secular trend of a small handful of large

artificial intelligence-driven stocks like the vidia video and Facebook.

Looking more carefully at the numbers, you can see why there is a growing disconnect between low and medium income families, families,

America is Trump deplorable,

ravaged by inflation and the elites in this country

...