One subscriber asked the right question… Here’s my full answer and what comes next.
If you caught U.S. Secretary of Treasury Scott Bessent’s interview on CBS’s “Face the Nation” this weekend, you know exactly why I keep telling my premium readers: “In Bessent we trust.”
While CBS tried to corner him with the usual doom-and-gloom talking points – tariffs, inflation, economic collapse – Bessent wasn’t having it.
He laid out the facts: Inflation is coming down, the economy is stronger than the headlines suggest and we’re not “decoupling” from China – we’re de-risking.
He dropped the numbers: The April CPI reading was just 2.3%. That’s the lowest inflation print in over four years.
He even said, “Why don’t we stop trying to say this could happen and wait and see what does happen?”
The bottom line is that Bessent was smart, strategic and measured. As a former partner at Soros Fund Management who helped “break” the Bank of England, I’d expect nothing less. Frankly, it was refreshing to see someone in Washington talk sense. We’re lucky to have him right now.
Now, what Bessent said this weekend is exactly what I’ve been telling my readers for weeks.
It also lines up perfectly with the questions flooding my inbox… everyone is asking about tariffs, inflation, interest rates, and the bouts of volatility we’ve seen in the market so far this year.
I get it. The media is on full-volume panic mode. But I don’t make investment decisions based on fear. I follow the data. And the data says the U.S. economy is standing on much firmer ground than the talking heads want you to believe.
That’s why today, I want to share two subscriber questions that reflect what most folks are really wondering right now. I’ll unpack my full answer for one question, and then I’ll turn to one of the nation’s best “chaos” traders to answer the other.
Let’s dive in…
Question No. 1
“Large retailers like Walmart Inc. (WMT) have announced that they will start to raise prices. Do you think that lower energy and food prices will be able to offset increases on the Consumer Price Index (CPI)?”
The simple answer is: Yes.
The Federal Reserve may still be worried about the “inflation boogeyman,” but the reality is quite different.
In just a moment, I’ll briefly summarize the recent key inflation data. But the truth is, the chart below shows everything you need to know…
- Consumer Prices (CPI): April’s headline reading came in at just 2.3% annually – the lowest inflation print in over four years. Even better, the monthly gain was only 0.2%, below economists’ 0.3% estimate. Core CPI (excluding food and energy) rose 2.8% year-over-year, also cooling from previous months.
- Wholesale Prices (PPI): Here’s where it gets interesting. Producer prices actually declined 0.5% in April – the largest monthly drop in more than five years. This flies in the face of tariff doom-and-gloom predictions. Annual PPI growth slowed to 2.4%, down sharply from 3.4% in March.
- Fed’s Preferred Inflation Gauge (PCE): The Personal Consumption Expenditures index rose just 0.1% in April, bringing the annual rate down to 2.1%. Core PCE also gained only 0.1% monthly, with the annual rate falling to 2.5%. Remember, the Fed’s professed target is 2% on the core reading, folks. We’re practically there.
The Bottom Line: Rather than the inflation surge everyone feared from tariffs, we’re seeing the opposite. The flood of imports ahead of tariff implementation has created an inventory glut, actually pushing prices lower across the board.
And while retailers are threatening to raise prices, many retailers will discount these goods to move inventory – which again is deflationary.
I should also mention this morning’s unemployment rate report, as it tends to weigh on the Fed’s decision on whether to lower key interest rates.
Now, the latest jobs data weren’t as impressive. Today’s payroll report revealed 139,000 jobs were added in May, and the unemployment rate remained steady at 4.2%. Economists expected 125,000 jobs. However, April’s payroll figure was revised lower to 147,000 jobs, compared to the previously reported 177,000. And March’s figure was lowered to 120,000, compared to the previously reported 185,000.
So, the jobs market is softening.
Personally, I am still in the camp that the Trump administration’s 10% baseline tariffs will largely be offset by a stronger U.S. dollar, which is finally getting its “mojo” back.
So, in my opinion, the Fed needs to consider the actual inflation data – which shows that inflation is cooling off – rather than anticipating an inflation boogeyman that hasn’t materialized.
Question No. 2
“The wild swings in the market are making me nervous. When will this volatility end? Do you see a light at the end of the tunnel?”
For this question, I decided to turn things over to my colleague Jeff Clark. If you’ve been following along with us recently, you know that Jeff is a seasoned market pro. (You’ll recall me talking with Jeff about everything his “chaos pattern” strategy to what he sees next in the market in Thursday’s Market 360.)
And just like how Scott Bessent, in his former role at one of the world’s top hedge funds, made a fortune by correctly predicting macro chaos, I like to call Jeff one of the country’s top “chaos” traders.
So, I could think of no better person to answer this question.
Here’s what he had to say:
Jeff: It’s no secret 2025 has been a wild ride to say the least.
Fears surrounding tariffs, inflation, government spending and debt, plus a dozen other threats have made 2025 an unpleasant experience for retirees and investors.
The S&P 500 reached correction territory and the Nasdaq entered bear market territory earlier this year.
Back in April, the S&P 500 collapsed 11% in only two days.
In those two days, $6.6 trillion in value vanished from the markets. Only to be followed by a massive single-day rally of 9% a couple of days later.
And now, the S&P is actually back in positive territory!
Yet all this back and forth in the markets has led to uncertainty and confusion.
Wild daily price swings have become the norm. That’s why the VIX index, which measures the amount of volatility in the markets, hit a five-year high back in April.
The last time it was that high was during the early days of COVID and the global lockdown.
But here’s the important thing I want your readers to understand…
This increase in volatility, fear and uncertainty will NOT ease soon. Quite the opposite.
Volatility is here to stay, regardless of inflation coming down, or tariff fears easing.
Which is why the markets are at a critical point.
Over the coming days and weeks, we could see widespread volatility – the likes of which we haven’t witnessed in nearly two decades.
But rather than panic, it’s critical that investors think about adopting strategies that will allow them to profit no matter which direction the market goes – and that’s exactly why I’m doing next Wednesday’s event.
Finding Opportunities in the Chaos
When most people see volatility in the market, they panic. But not Jeff.
Last September, he was able to hand his readers a gain of 227% in eight days from Yum China Holdings (YUMC).
He also predicted the market’s rebound in April, helping his readers close out trades like 90% in four days from Marvell Technology (MRVL) and 89% in two days from Dell Technologies (DELL).
That’s no one-off event, either. As a master trader with 40 years of experience, Jeff has made a career out of finding unique opportunities amidst market chaos.
In fact, 2008, 2020, and 2022 – three of the most devastating years for the average investor – turned out to be among the most lucrative years of his career.
Jeff used his “chaos pattern” to anticipate those wild market swings – and hand his readers over 1,000 winning trades during those times.
And his “chaos pattern” has just reappeared.
That is why on Wednesday, June 11, at 10 a.m. Eastern, Jeff is holding the Countdown to Chaos event, where he will detail everything you need to know about this “chaos pattern”… and how you can use it to find opportunities while others panic.
The event is free. But Jeff asks that you register for it now.
If you have any money in the markets, or are concerned about what comes next, you won’t want to miss Jeff’s upcoming special event.
It is less than a week away. So, be sure to click here now to reserve your spot.
Sincerely,
Louis Navellier
Editor, Market 360
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Walmart Inc. (WMT)
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