Politics and Corporate Greed are close bedfellows. This week’s market will be driven by the US inflation number and what it means for rate cut timing, but the costs of inflation fall hardest upon the poor. Political populism is driven by inequality and corporate greed, and underlies market instability.

It’s become clear this week the market outlook has changed utterly – higher rates are now the new normal, and that will have consequences on demand at a time when supply remains in flux. Meanwhile, global instability is rising. Markets and populations need to understand reality – while campuses tear themselves appart it is Iran driving the horror in the Middle East, but good luck explaining it to your Keffiyeh wearing kids.

The strength and resilience of US employment, and the growing sense a recession has been dodged, hides fundamental imbalance: if consumers are too broke to consume, then how are corporate earnings set to rise? Doh!

Markets are poised for the strongest year finish in decades, anticipating early rate cuts and upside in 2024. Meanwhile consumers wrestle with wages falling behind costs, while businesses struggle with debt. The gap between expectations and reality is simply too wide – and will become increasingly apparent.