Stocks May Be Next to Take a Tumble: 3-Minutes MLIV

• Weak retail sales and upcoming jobs/CPI data suggest a 'stagflationary' environment, worrying investors.
• Expectations for continued dollar weakness and a steepening US yield curve are noted.
• The Yen's rally is seen as a short squeeze, potentially leading to further short-term downside for USD-JPY.
• Overall, the market dynamic is deemed 'not great for stocks and risk assets', with a potential 'big downside move' for equities in the coming weeks.

Mark Cudmore expresses concern about a 'stagflationary whiff' from upcoming US economic data, including the jobs report and CPI, following weak retail sales. He anticipates continued dollar weakness and steepening yield curves, leading to a bearish outlook for stocks and risk assets. The Yen's recent rally is viewed as a short squeeze, but with potential for sustained rallies.