I may be early but I am seeing increasing signs of economic storm clouds ahead, as the Federal Reserve (The Fed) and the European Central Bank (ECB) try to contain inflationary forces without triggering a recession.
Today, the ECB announced record inflation numbers for the month of May for the European Union zone and indicated that they will start an interest rate increasing cycle in July with a 1/4 point increase.
Several observers think with the next release of U.S. inflation numbers, later this week, may be at the point of “peak” inflation. That could be wishful thinking.
I remain very cautious on the economic outlook. I think the fact that many major stocks that had been leading the markets up the past years, are showing negative technical patterns, including AAPL ($145) TSLA ($730) and NVDA ($185) is another early warning sign of rough weather ahead.