So, the last week has flashed the reddest of red flags that Stagflation is upon us: Payrolls disappoint. Retail Sales disappoint. Inflation hotter than expected. Sentiment far worse than expected.
Source: Bloomberg
Crappy Stocks (money-losing tech companies) dropped for the 3rd straight week.
From currency war, to trade war, to tech war, to climate war, and now to space war, the superpower rivalry between the US and China continues to flare up with Beijing expected to land its rover on the red planet today.Â
CNET reports that the China National Space Administration s (CNSA) spacecraft, which has been orbiting Mars since February, is expected to enter the Martian atmosphere at 7:11 p.m. ET. CNET cites multiple Twitter accounts that monitor China s space programs, though we must point out CNSA has yet to confirm the timing.Â
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Preliminary May 2021 Michigan Consumer Sentiment Significantly Declined
The preliminary University of Michigan Consumer Sentiment for May came in at 82.8, down from April s 88.3, down from March s 84.9, but up from February s 76.8.
The Econoday consensus range was 90.0 to 94.0 (consensus 90.3)
Surveys of Consumers chief economist, Richard Curtin, makes the following comments:
Consumer confidence in early May tumbled due to higher inflation the highest expected year-ahead inflation rate as well as the highest long term inflation rate in the past decade. Rising inflation also meant that real income expectations were the weakest in five years. The average of net price mentions for buying conditions for homes, vehicles, and household durables were more negative than any time since the end of the last inflationary era in 1980 (see the chart). Importantly, consumer spending will still advance despite higher prices due to pent-up demand and record saving balances. This combination of pe