The author notes that markets are pricing in an unlikely inflationary boom, with stocks remaining flat despite significant upward moves in 10-year yields and Brent crude. The upcoming week will test the strength of the 'buy the dip' mentality among market participants chasing highs.
•Markets are increasingly pricing in an unlikely inflationary boom.
•Stocks remained flat last week despite 10-year yields rising 25 basis points and Brent crude jumping 10%.
•The start of the week will serve as a test for the conviction of investors buying the dip at market highs.