Michael Spencer

Macro Compass

The macro backdrop is moving closer to Goldilocks, but markets are increasingly positioned for it.

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Michael Spencer
Aug 10, 2026
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Compass

Weak US hiring, contained labour costs and strong productivity could allow inflation to moderate without producing recession. Cooling Chinese producer prices and an eventual decline in the Hormuz energy premium would reinforce that outcome, while exceptional corporate earnings suggest aggregate US growth remains considerably stronger than Friday’s payroll number implies.

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