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* FIEND'S SUPERBEAR MARKET REPORT *
* July 7, 2025 *
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* e-mail: fiendbear@fiendbear.com *
* web address: http://www.fiendbear.com *
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Fiend Commentary
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Bullish
Euphoria Returns—But for How Long?
Markets are entering the new week with optimism after
the signing of the much-anticipated “Big Beautiful Bill” over the weekend—a
move cheered by traders hoping for renewed government spending and economic
momentum. However, fresh threats of tariffs—largely seen as bluster with little
immediate bite—are also adding a layer of geopolitical noise.
Despite these crosscurrents, investor sentiment has flipped
quickly back to extreme bullishness. Stocks are near record highs, and
volatility indicators remain deeply subdued. Yet beneath the surface, risks are
building.
The market now appears priced for perfection, fully baking in
multiple rate cuts in 2025. But with this week’s CPI and PPI reports looming,
any hint of re-accelerating inflation could shatter those expectations and send
yields—and nerves—higher.
After all, the Fed’s credibility is already on thin ice. A
stubborn inflation print could slam the door on cuts entirely, forcing traders
to confront the uncomfortable possibility of higher-for-longer rates.
As bulls celebrate the Big Beautiful Bill, they may be ignoring
the inflation iceberg dead ahead.
Weekly Market Summary Page
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