DC Lite #180

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1. Consumer inflation expectations. "'Median three-year-ahead inflation expectations declined sharply by 0.66% to 2.3%, hitting a series low since the survey’s inception in June 2013.' Households will resist higher prices."

2. Corporate strength. "US business fixed investment is accelerating and the corporate sector is running a financial surplus to the tune of c. 2.6% of GDP – both of which are unheard of ahead of a recession."

3. Global equity fund flows. "Despite the market turmoil, inflows to equities continued for a 16th straight week, actually picking up from the prior week, while inflows to bond funds slowed."

See: TKer by Sam Ro

4.Global earnings sentiment. Earnings sentiment (upgrades - downgrades) in the US has improved sharply in recent weeks.

5. Q3 guidance. “Earnings guidance momentum — derived in part from the ratio of increased versus reduced guidance — is expected to be positive in the July-to-September period for the first time since 2021.”