Premium: Unusual bet taken by Wall Street – Fed’s front-ending rates now, cuts in 2023

START YOUR MORNING BY LISTENING TO TODAY'S BIZNEWS BREAKFAST BRIEFING – Nervy markets as Walmart disappoints, down 10%, knocks Amazon; Gold majors fall on JSE; Wall Street waits for Big Tech quarterlies; Leon Louw attacks FMF..This month's BizNews portfolio update webinar at noon today, is in the middle of Wall Street's quarterly earnings season. So I've been paying even more attention than normal to the raft of results dominating the news flow. Even those we don't of companies we don't own, like Walmart, whose disappointing numbers last night saw the stock drop 10% in after-market trade..___STEADY_PAYWALL___.Unfortunately, we'll only get to see the numbers from our portfolio's Big Two – Apple and Amazon – later in the week. But it's already likely that whatever short-term influence they might have will be short-lived. Right now investors are taking an unusual bet whose success (or otherwise) will have a major influence on share prices over the next few months. .The WSJ's Sam Goldfarb sums it up in a report published this morning. His findings support insights shared with us on Friday by Stanlib chief economist Kevin Lings (watch here). In short, Wall Street is betting the Fed's 'front-end-loading' of interest rates will enable it to start cutting again from mid-2023 after inflation drops sharply..Those betting on this outcome are aggressively accumulating stocks at the current depressed levels. More details at noon. If you haven't yet registered for the Premium-member only webinar, click here. .WATCH: On Friday the Free Market Foundation's President Leon Louw distributed an emotional 'Open Letter' explaining why he is leaving the once respected economic think tank which he co-founded in 1975. In this interview with BizNews's Alec Hogg, SA's long-time voice for free enterprise explains how he believes the organisation has lost its way. He is appalled at its politicisation through a 'cabal' which has acquired control, reflected in its staff is populated by lawyers rather than economists. Louw has approached the funders of the FMF to request they withdraw their financial support of the organisation which is no longer able to interact across the political spectrum because, he claims, it has become aligned with the Democratic Alliance..More for you to read today: .Our plan to address SA's energy crisis – Cyril Ramaphosa. President says SOE is recruiting skilled personnel, including former senior Eskom plant managers and engineers from private sector.Maputo is eating Transnet's lunch. RW Johnson says Mozambique and the private sector is stepping in as SA's ports fail.Russia Courts African Nations and Aims to Deflect Blame for Food Crisis. Moscow's top diplomat said during a tour of the continent that Western sanctions, not Russia's invasion of Ukraine, were responsible for rising costs.Why Inflation Is on the Way Down. The Fed should ask Milton Friedman. When growth of the money supply slows, so does the increase in prices..NB FOR YOUR WALL STREET JOURNAL ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via Biznews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our helpdesk can assist – support@alecbiznews-com

Premium: Unusual bet taken by Wall Street – Fed’s front-ending rates now, cuts in 2023

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