Record companies have issued negative EPS guidance. Bond investors see recession and are pricing in the first rate cuts.

66 $SPX companies have issued negative EPS guidance for Q1 2022, which is the highest number since Q4 2019 (73). #earnings, #earningsinsight, https://t.co/jTEKh3mhNV pic.twitter.com/xsAQEJQuTb

— FactSet (@FactSet) March 25, 2022

So it appears the stock market is now being viewed as an inflation hedge.

Guess no one remembers the 1970s…

— Ross Hendricks (@Ross__Hendricks) March 25, 2022

Bond investors clearly see #recession, and are pricing in the first rate cuts as early as 2023. But what they don't see is that despite a recession #inflation will stay high. If they do cut inflation will get worse, so they may keep hiking. Either way, #bond investors get killed!

— Peter Schiff (@PeterSchiff) March 25, 2022

The move in the 10 year yield today is insane. I’m amazed the market continues to ignore this. Especially tech.

We aren’t far away from 2.5%. Just goes to show you the stock market doesn’t understand interest rates or higher borrowing costs and what it does to the economy pic.twitter.com/bf4Livm1kU

— QE Infinity (@StealthQE4) March 25, 2022

"About a third of consumers expect their overall financial position to worsen in the year ahead, the highest recorded level since the survey began in the mid 1940s…" https://t.co/51Vf6B4BQX pic.twitter.com/EQV1PKKl46

— Nomi Prins (@nomiprins) March 25, 2022

US Yield Curves

An inverted yield curve tends to signal that a recession is on the horizon (usually 6 to 18Mths away).

But who's right and who's wrong? pic.twitter.com/Taw1U2inwp

— Richard Dias (@RichardDias_CFA) March 25, 2022