After one of the best days in months on Wednesday, stocks have reversed and are weak today. Breadth is the inverse of yesterday, with about three losers for each gainer, but the intensity of the selling is relatively mild. Stocks are off the early lows, and there is some limited dip-buying taking place.
The headline on the CPI news is that inflation is at the highest level in 40 years, but we already know that, and the market has been discounting it to a great degree. Bonds are weak, and the 20+ Year Treasury Bond Fund ETF is now at its lowest levels of 2022. Interest rates are going up, and Fed rate hikes are coming soon.
The bigger unknown right now is the situation in Ukraine. There is unlikely to be any quick and easy diplomatic solution, but some market players are hopeful. The major concern is that Putin will keep pressing and create horrific damage while destroying his army. There is plenty of propaganda floating around, but the situation is still very uncertain, and headline risk remains very high.
I cut back a few positions this morning and don't see anything I'm anxious to buy right now. I do want to add to shipping play ZIM Integrated Shipping Services (ZIM) which had a very strong report Wednesday and will pay a massive dividend of $17 per share.
There are a number of stocks on my radar, but today doesn't look like a good day for adding much.
