Inflation Run Amok

“We ain’t seen nothing yet” [Unsubscribe]( [Wiggin Sessions] July 22, 2022 Inflation Run Amok “Much have I suffered, labored long and hard by now in the waves and wars. Add this to the total—bring the trial on!” — Odysseus, by some guy known as Homer [Addison Wiggin]Dear Reader, “Buy when everyone is in pain,” says Marin Katusa on [this week’s Wiggin Session](. “And sell when they are cocky at the cocktail party.” A finger to the pulse then, today. Yesterday we said that things will get ugly in the coming months. The average consumer seems to think the same. This is the [University of Michigan’s chart on consumer sentiment]( [Current Financial vs a year ago] What we’re looking at is a clear downtrend from around this time last year. Our analysis tells us the average consumer is beginning to allocate their finances selectively, readying for defensive positioning. Buckling up. Ultimately, it is the rise in the cost of living (i.e. inflation) that is fueling the average consumer’s misgivings. COVID is out the window, though Biden would beg to differ. Inflation runs amok, and the Fed is playing catch up. No economic muse to save Powell. (Amok, by the way, I just learned this week, is a Malay word.) Consumer spending accounts for roughly 65% of the United States’ total GDP. If we are to trust the average consumer’s psychology, all signs point to the r-word. Katusa defined it quite curtly, [here](. Spending on cruises and international travel is the first to go. So why is [Larry Fink saying]( “Go on vacation!” to Mad Money’s Jim Cramer on CNBC? Maybe because that's what we all ought to do before October rolls around and the holiday’s slam us. Before it really gets bad. Katusa again: “Do your homework. And you keep buying, [like an alligator]( We ain’t seen nothing yet. So it goes, [Addison Wiggin] Addison Wiggin Founder, The Wiggin Sessions P.S. Chris Daigle, a doer-not-sayer and long-time friend of mine in the finpub industry said this [about our Session this week](. “I love Marin Katusa's investment philosophy... thanks for having him on your channel, Addison 👍🏼.” Thanks for watching, Dr. Daigle. 5 ways to recession-proof your portfolio [Click here.]( 10-year Treasuries are worse than at any time since 1790. That’s right. 1790. Ed. note: Got something to say? Send your feedback to The Wiggin Sessions, [here.](mailto:WigginSessions@5minforecast.com) Follow the Wiggin Sessions on Social Media! [Facebook Group]( [Twitter]( [Instagram]( [YouTube]( [LinkedIn]( [The Financial Reserve]The Wiggin Sessions is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Consilience, LLC. delivering daily email issues and advertisements. To end your The Wiggin Sessions e-mail subscription and associated external offers sent from The Wiggin Sessions, feel free to [click here.]( Please read our [Privacy Statement.]( For any further comments or concerns please email us at support@5minforecast.com. If you are having trouble receiving your The Wiggin Sessions subscription, you can ensure its arrival in your mailbox by [whitelisting The Wiggin Sessions.]( © 2022 Consilience, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Email Reference ID: 400WIGED01