Good morning contrarians! Stock futures are down again with copper as bonds see bids, continuing the risk-off theme…

It’s a summer Friday before a long holiday weekend without much on the calendar. Just construction spending at 1000 really warrants interest. That would normally make for a quiet day, but the overall mood seems to be tilted more toward ‘risk off’ than quiet. Just look at bond yields and copper.

The general calculation remains this: a Fed hellbent on removing liquidity from the system will be bad for the economy, which will be bad for stocks. The Fed needs to do this to rein in inflation. Until you see substantial progress on inflation, the Fed will not back off and investors will remain cautious if not downright negative on risk assets.