Part 2/6:
Lee emphasized the crucial role that inflation data plays in determining market movements. He pointed out that the markets have been in correction mode for almost a month, specifically 23 trading days, which ultimately leads up to a critical day for inflation data. He indicated that if this week's Consumer Price Index (CPI) came in below expectations, it could restore confidence in the markets and potentially trigger a recovery.
He also articulated that volatility is expected in the near term, attributing much of the market’s unease to rising yield rates, while cautioning that this should not detract from the long-term perspective. He reiterated that long-term investors should not lose hope, particularly with a strong earnings season on the horizon.