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- Recent inflation data has convinced markets of a dovish pivot by the Federal Reserve.
- But the market wrongly priced in a looser stance at least six times in the last few years, Deutsche Bank wrote.
- While this time could be true, inflation is hardest to combat in the final stretch, analysts warned.
The stock market has been on a tear over the last month on hopes for a dovish pivot from the Federal Reserve, but investors have seen this movie before.
In fact, markets have incorrectly priced in such a pivot six times over the last two years, according to Deutsche Bank, which sounded cautious about this seventh time.