Risk assets continue to face a challenging environment as Federal Reserve officials take incremental actions to tighten financial conditions.

Darius Dale is the Founder and CEO of 42 Macro, an investment research firm that aims to disrupt the financial services industry by democratizing institutional-grade macro risk management processes.

Key Takeaways

Short-Term (less than one month): Our market signaling process is pointing to a continuation of the challenging environment for risk assets. While a downside surprise in the U.S. April CPI data provided some reprieve, we, at 42 Macro, don’t think a grossly anticipated negative rate of change inflection will do much in isolation to catalyze a durable bottom in either stocks or bonds given our analysis of second-round inflation momentum and the latest forward guidance out of the Federal Reserve and European Central Bank.

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