Investing
Haven
No Result
View All Result
Forecasting Global Markets
  • Login
  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto
  • Top AI Stocks →
  • Top Silver Stocks →
  • TOP ENERGY STOCKS →
  • Top Lithium Stocks →
  • CRYPTO SELECTION →
Investing
Haven
  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto
No Result
View All Result
InvestingHaven
No Result
View All Result

Which Is The Single Most Concerning Chart For Investors In 2023 & 2024

The TIP ETF's 2023 & 2024 projection indicates rising inflation expectations, which, if a double bottom is confirmed, alleviates pressure on risk assets seen in 2022.

by Taki Tsaklanos
August 27, 2023
in Markets & Stocks
0
market sentiment
Share on FacebookShare on Twitter

Earlier this year, we identified one particular chart as “The Single Most Important Chart Of 2023.” This chart defied prevalent market crash predictions as its chart pattern was reluctant to break down. This, along with a few other leading indicators, made us predict a bullish 2023 outlook with sector rotations as the dominant market dynamic.

The single most important chart was the TIP ETF, reflecting inflation expectations. Despite 2022’s counterintuitive inflation-expectation decline amid rising inflation, this was attributed to a market preoccupation with disinflationary policies. The article predicted that following historical TIP ETF patterns would trigger upward market and metal trends in 2023.

Indeed, the projection manifested as the TIP ETF held its ascending trajectory, a pivotal precursor to prevent the anticipated market crash. The article highlighted that investor anxiety typically accompanied the trendline approach. While markets were expected to rise gradually, sector rotations were anticipated. Selective investments were emphasized due to non-simultaneous growth prospects.

The conclusion stressed commitment to undervalued high-growth stocks and sectors with promising secular growth cycles. This article, challenging prevailing pessimism and emphasizing the psychological aspect of investing, offered an alternative viewpoint and set the stage for subsequent market trends.

The Single Most Concerning Chart In 2023 & 2024

Let’s review where TIP ETF (Treasury Inflation-Protected Securities) stands.

Note that this ETF is a proxy for gauging inflation expectations in the market. It tends to decline when risk assets are topping (2022), it tends to bottom when risk assets are going through a consolidation (2023).

most concerning chart 2023 2024

Here’s a breakdown of the 5 key elements in the chart:

  1. Long-Term Trendline: The chart features a long-term rising trendline that has been a critical reference point. This trendline has historically indicated the market’s perception of inflation trends and central bank policies.
  2. Inflation Expectations Movements: The line on the chart representing inflation expectations experienced a significant drop throughout 2022. This is despite the backdrop of rising inflation during the same period.
  3. Key Turning Points: The chart highlights specific instances where the inflation expectations line approached or intersected the long-term trendline. These points often coincide with critical shifts in market sentiment.
  4. 2023 Outlook: The chart emphasizes that the inflation expectations line managed to maintain its upward trajectory and stay above the long-term trendline, indicating a shift in market sentiment. This suggests that the market perceives a potential end to the tightening cycle of central banks.
  5. Projection: Based on historical patterns, the chart suggests that if the TIP ETF’s long-term rising trendline holds, this could drive upward movements in both broader markets and metals markets. This projection is contingent on the market’s anticipation of central banks’ policy changes.

In summary, the chart demonstrates how inflation expectations, as reflected by the TIP ETF, play a crucial role in shaping market sentiment. It highlights the importance of the ETF’s long-term trendline and suggests that its movements could act as a leading indicator for broader market trends and metal markets. The chart also underscores the significance of sector rotations and the psychological challenges investors face in navigating these market dynamics.

Conclusions from the TIP ETF chart for 2023 & 2024

As we analyze the chart, it becomes evident that the TIP ETF’s long-term rising trendline acts as a key psychological and technical reference point. This trendline has historically played a pivotal role in guiding market sentiment. Notably, the chart illustrates that during the course of 2022, while inflation was on the rise, inflation expectations paradoxically plummeted. This divergence suggests that the market was predominantly focused on central banks’ disinflationary monetary policies.

What does this chart suggest for 2023 and 2024? The chart implies that, based on historical patterns, the inflation expectations line is anticipated to remain above the long-term trendline. This suggests that the market may perceive an impending end to the era of central bank tightening. This anticipation holds significance as it implies that the falling inflation expectations that have previously exerted downward pressure on risk assets might be in the process of reversing. Therefore, there’s a likelihood that risk assets could be better supported during this period, potentially leading to a more stable uptrend which can only be confirmed if TIP ETF confirms a double bottom in 2022 & 2023.

Receive our weekly newsletter.

*We hate spam as you do.

premium service trade alerts   premium service trade alerts   premium service crypto teaser  
WARNING: InvestingHaven.com, our site, is not affiliated and has no connection whatsoever with Invest Haven Group on Invest-Haven.com or Investing-Haven.com. InvestingHaven.com did not have and will never have sales reps. Do not accept financial offers, certainly not by telephone, this is why >>
Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

Latest

stocks forecast

How To Know When The S&P 500 Confirms A Bullish Turning Point?

September 28, 2023
cryptocurrency forecast prediction

The Most Bullish Cryptocurrency Chart Setup Of October 2023

September 28, 2023
leading indicators

Will The S&P 500 Find Support At Its 200 Day Moving Average?

September 24, 2023
uranium stocks

Is The Breakout In The Uranium Market Confirmed?

September 24, 2023

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • 2023 Forecasts
  • Stocks
  • Commodities
  • Silver
  • Lithium
  • Crypto

Site Navigation

  • RSS Feed
  • About us
  • Mission 2026
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • InvestingHaven vs. Invest-Haven
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2023 InvestingHaven

No Result
View All Result
  • 2023 Forecasts
  • Stock market
  • AI Stocks
  • Alternative Energy
  • Lithium Articles
  • Lithium Stocks
  • Silver Articles
  • Silver Stocks
  • Crypto Articles
  • Premium Crypto Research
  • Premium Services & MyAccount

Copyright © 2023 InvestingHaven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

    InvestingHaven.com honours your privacy. Read our Privacy Policy