ERShares In The News

Despite recession jitters weighing down the market early this week, we believe that next week's CPI readings and FOMC meetings set the stage for a powerful year-end (Xmas) rally. We believe a continuing trend of downward inflation will coincide with the Fed indicating that rate hikes are nearing an end. We are anticipating a 50BP rate hike next week and another 2 increases in the first quarter 2023.

Watch Eva Ados on discussing how Tech Layoffs have not yet affected Exorbitant Executive Compensation

Markets will respond favorably as it becomes increasingly clear that Fed will start to relax the 75bp rate hikes. Despite CPI readings which have a 30-40% dependence on a lagging real estate rental metric, most current indicators (GDP, commodities, housing starts/pricing, etc) suggest that the economy is slowing down and that inflation is coming under control. We expect a year-end rally and better markets in 2023.

Watch Eva Ados on Bloomberg discussing the US economy and key Investment Opportunities in a volatile market.

Joel Shulman comments on key market issues heading into the 4th quarter. He notes that rising CPI numbers lag true performance. For example, housing costs, which represent 30 to 40% of the CPI, tend to lag true performance by many months due to the nature in which the data is compiled. Moreover, he expresses concern that the Federal Reserve may risk over-tightening and driving the economy into a deeper recession than necessary. He mentions that GDP is already declining, and housing costs are dropping along with a drop in energy and commodities. He believes there is no need for significant interest rate increases going forward as the key changes are already well underway. He does show some optimism that Markets will rise in the 4th quarter as it becomes increasingly evident that inflation is coming down. Moreover, companies will experience a good news/bad news outcome with increasing layoffs as the stock price usually rises upon announcement. Overall he remains cautiously optimistic that the year will end higher than current levels.

Eva Ados joins CNBC's Power Lunch to give her take on Chevron and Tesla. She highlights the drivers and fundamentals of making one a buy and one hold in the current market conditions.

Watch Eva Ados on Bloomberg discussing the US economy, CPI indicators and Unemployment.

Though only one month yet has been reported with declining CPI levels (July report announced in August), Ados believes more are in store for the remainder of 2022. Watch the video for more.

Investors need to focus on companies with pricing power. Key metrics for investing in 2022 focus on which companies can hold costs and maintain margins. Watch the video for more.

Eva Ados on CNBC: The Fed has been resolute in their messaging all year and we do not believe they revealed anything new in their Jackson Hole news.