BONUS: Elon Musk: This Could Turn $100 into $100,000  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

February 27, 2026   |   Read Online Core PPI Just Hit 2.9% — The "Higher for Longer" Trade Is Back BONUS: Elon Musk: This Could Turn $100 into $100,000 First a message from our friends at Brownstone Research (Sponsor) Editor's Note: What if you could claim a stake in what's set to be the biggest IPO ever... starting with just $500? Click here to see the details from former tech executive and angel investor Jeff Brown – the man who picked Bitcoin, Tesla, and Nvidia before they exploded higher. Or read more below. Dear Reader, What if you could shrink your entire wealth journey from decades down to just 24 hours? Sounds impossible... But click here and I'll show you how Elon Musk is about to make it a reality. In short, Elon Musk is predicting this investment could jump 1,000x higher from here. That turns $100 into $100,000... $500 into half a million dollars... And a tiny stake of $1,000 into $1 million. If he's right... And I believe he is... This could be the best investment opportunity of the decade. We have so much to look forward to, Jeff Brown Founder & CEO, Brownstone Research BONUS ARTICLE Core PPI Just Hit 2.9% — The "Higher for Longer" Trade Is Back When inflation surprises by 130 basis points, it's not a rounding error. It's a regime reminder. Core PPI just printed 2.9%, versus expectations of 1.6%. That's not a miss. That's a repricing event. And the market immediately jumped to the same conclusion: The Federal Reserve may have to stay "higher for longer." Now let's slow down and separate: Signal Noise Overreaction Opportunity Because this is exactly the kind of macro shock that creates cheap setups—if you understand the transmission map. Scoreboard: What Actually Happened 1) The Print Core PPI: 2.9% Expected: 1.6% Surprise magnitude: +1.3 percentage points That's a major upside deviation. Wholesale inflation matters because it often feeds into: Future CPI readings Corporate input costs Margin pressure Fed rate expectations 2) Immediate Market Reaction Typical "hot inflation" tape behavior: Treasury yields spike Rate cut odds get repriced lower Growth stocks wobble Financials and short-duration cash flows outperform Translation: Duration risk got punished. The Real Reason the Market Cares It's not about 2.9% in isolation. It's about what 2.9% implies for: Rate trajectory Discount rates Equity multiples Markets don't trade inflation prints. They trade the Fed reaction function. If inflation is sticky: Cuts get pushed out Terminal rate expectations rise Long-duration cash flows get discounted harder Cheap Investor translation: The math on 2027 earnings just changed by a few basis points. That's enough to move trillions. Deep Dive: Why PPI Matters More Than It Looks PPI hits upstream first. If producers face rising costs: They either: Absorb it (margin compression) Pass it on (CPI pressure) Cut costs elsewhere (capex slowdown, hiring slowdown) None of those are clean outcomes. This is why one hot PPI print can: Delay rate cuts Tighten financial conditions Increase volatility The Rate Math (Plain English Version) Higher inflation → Higher yields → Lower present value of future cash flows. The stocks most sensitive: High-multiple tech Unprofitable growth Small caps with floating debt The stocks less sensitive: Cash-flow rich defensives Financials with NIM leverage Energy/materials (if inflation stays elevated) This is duration math, not emotion. Sector Transmission Map Here's how the Cheap Investor thinks about it: 1) Growth / Long-Duration Tech If yields rise meaningfully: Multiples compress first. Even strong companies can fall on rate repricing alone. Key risk: Valuation compression, not earnings collapse. 2) Financials Banks can benefit from: Higher net interest margins Slower cut expectations But only if credit stays clean. Watch: Loan loss commentary. 3) Consumer Discretionary Worst mix: High rates Sticky input costs Consumer fatigue Margins get squeezed from both sides. 4) Energy & Materials Inflation resilience can support pricing. These names often act as: Macro hedges. 5) Utilities & REITs Higher-for-longer is not friendly. These sectors are bond proxies. If yields stay elevated, they struggle. Is This an Overreaction? Here's the Cheap Investor filter: One data point does not make a trend. But: The magnitude of the surprise matters. A +1.3% deviation is not noise. The key question: Was this driven by: Energy volatility? One-off categories? Broad-based input inflation? Breadth of inflation matters more than the headline. What the Fed Might Actually Do The Fed doesn't panic on one print. But it: Adjusts tone Reinforces patience Pushes rate-cut expectations out The market had already been pricing cuts this year. A hot PPI makes that timeline less certain. That uncertainty widens dispersion. Bull / Base / Bear Scenarios Bull Case: PPI spike is transitory Trigger: Next inflation data moderates CPI doesn't confirm Yields stabilize Outcome: Growth recovers Multiples rebound This becomes a shakeout Base Case: Higher-for-longer narrative sticks Trigger: Mixed inflation data Fed tone remains cautious Cuts delayed but not canceled Outcome: Choppy equity markets Defensive rotation Selective value outperformance Bear Case: Inflation reaccelerates meaningfully Trigger: CPI confirms Wage growth re-accelerates Energy pressures persist Outcome: Broad multiple compression Small caps underperform Credit spreads widen Cheap Investor Strategy This is not a panic moment. It's a discipline moment. Step 1: Don't Chase the First Reaction Inflation days often overshoot. Let the yield move stabilize before reallocating aggressively. Step 2: Focus on Balance Sheets Higher-for-longer punishes: Floating-rate debt High leverage Negative free cash flow Favor: Net cash Strong FCF Pricing power Step 3: Build a "Rate-Resilient" Watchlist Look for companies with: Short-duration earnings Immediate cash generation Low refinancing risk What Makes Something Cheap in This Regime? Cheap is not "down 10%." Cheap is: Down because of rate repricing But earnings durability unchanged For example: A profitable software company that falls purely on yield spike may be opportunity. An unprofitable growth name falling on yield spike is risk compounding. Know the difference. Technical Overlay Watch: 10-year yield reaction Dollar strength Financials relative strength vs SPY If yields fade quickly: The inflation scare may unwind. If yields hold highs: The higher-for-longer trade has legs. Cheap Investor Checklist Track these over the next 2 weeks: Next CPI print confirmation or rejection Fed speaker tone shift 10-year yield direction Credit spreads Small-cap performance vs large-cap Financials vs tech relative strength Consumer discretionary margin commentary One red flag: If growth stocks underperform even on flat-yield days. That suggests positioning damage. Bottom Line Core PPI at 2.9% vs 1.6% expected is a real shock. But the real story isn't inflation. It's duration repricing. If inflation proves sticky, higher-for-longer becomes base case. If this fades next month, this becomes a volatility gift. Cheap Investor rule: Macro shocks create mispricings. But only if you know which earnings streams are sensitive to discount rates—and which aren't. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investing involves risk, including the potential loss of principal. 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