Institutions: Significant Discrepancies Among CPI Report Components Are Actually Bullish

Jinse Finance reported that Brad Conger, Chief Investment Officer of Hirtle Callaghan Co., stated that there are significant differences among the various components of the January CPI report. For us, this divergence is good news. The lack of a unified trend means the economy is pricing in shortages and surpluses on an item-by-item basis. This is not an inflationary world, and in the long run, artificial intelligence is a deflationary force. We are overweight duration in fixed income and overweight interest rate-sensitive sectors such as homebuilders and real estate.