OK here is the story of the day. Consumer prices rose 8.5% in July, less than expected as inflation pressures ease a bit https://www.cnbc.com/2022/08/10/con...pected-as-inflation-pressures-ease-a-bit.html (BOLD is my opinion OR what I consider important content) "Key Points The consumer price index rose 8.5% in July from a year ago, below expectations, due largely to slumping energy prices. Excluding volatile food and energy prices, so-called core CPI rose 5.9% annually and 0.3% monthly, compared with respective estimates of 6.1% and 0.5%. The report was good news for workers, who saw a 0.5% monthly increase in real wages. Prices that consumers pay for a variety of goods and services rose 8.5% in July from a year ago, a slowing pace from the previous month due largely to a drop in gasoline prices. On a monthly basis, prices were flat as energy prices broadly declined 4.6% and gasoline fell 7.7%. That offset a 1.1% monthly gain in food prices and a 0.5% increase in shelter costs. Economists surveyed by Dow Jones were expecting headline CPI to increase 8.7% on an annual basis and 0.2% monthly. Excluding volatile food and energy prices, so-called core CPI rose 5.9% annually and 0.3% monthly, compared with respective estimates of 6.1% and 0.5%. Even with the lower-than-expected numbers, inflation pressures remained strong. The jump in the food index put the 12-month increase to 10.9%, the fastest pace since May 1979. Butter is up 26.4% over the past year, eggs have surged 38% and coffee is up more than 20%. Despite the monthly drop in the energy index, electricity prices rose 1.6% and were up 15.2% from a year ago. The energy index rose 32.9% from a year ago. Used vehicle prices posted a 0.4% monthly decline, while apparel prices also fell, easing 0.1%, and transportation services were off 0.5% as airline fares fell 1.8% for the month and 7.8% from a year ago. Markets reacted positively to the report, with futures tied to the Dow Jones Industrial Average up more than 400 points and government bond yields down sharply. “Things are moving in the right direction,” said Aneta Markowska, chief economist at Jefferies. “This is the most encouraging report we’ve had in quite some time.” The report was good news for workers, who saw a 0.5% monthly increase in real wages. Inflation-adjusted average hourly earnings were still down 3% from a year ago. Shelter costs, which make up about one-third of the CPI weighting, continued to rise and are up 5.7% over the past 12 months. The numbers indicate that inflation pressures are easing somewhat but still remain near their highest levels since the early 1980s. Clogged supply chains, outsized demand for goods over services, and trillions of dollars in pandemic-related fiscal and monetary stimulus have combined to create an environment of high prices and slow economic growth that has bedeviled policymakers. The July drop in gas prices has provided some hope after prices at the pump rose past $5 a gallon. But gasoline was still up 44% from a year ago and fuel oil increased 75.6% on an annual basis, despite an 11% decline in July. Federal Reserve officials are using a recipe of interest rate increases and related monetary policy tightening in hopes of beating back inflation numbers running well ahead of their 2% long-run target. The central bank has hiked benchmark borrowing rates by 2.25 percentage points so far in 2022, and officials have provided strong indications that more increases are coming. There was some good news earlier this week when a New York Fed survey indicated that consumers have pared back inflation expectations for the future. But for now, the soaring cost of living remains a problem. While inflation has been accelerating, gross domestic product declined for the first two quarters of 2022. The combination of slow growth and rising prices is associated with stagflation, while the two straight quarters of negative GDP meets a widely held definition of recession. Wednesday’s inflation numbers could take some heat off the Fed. Recent commentary from policymakers has pointed toward a third consecutive 0.75 percentage point interest rate hike at the September meeting. Following the CPI report, market pricing reversed, with traders now anticipating a better chance of a lesser 0.5 percentage point move. “At the very least, this report takes the pressure off the Fed at the next meeting,” Markowska said. “They’ve been saying they’re ready to deliver a 75 basis point hike if they have to. I don’t think they have to anymore.”" MY COMMENT OK numbers here. At least the markets are reacting very nicely since they always expect the worst.....egged on by the fear mongering media. I cant remember how long ago I called the bottom. It was a while back. NOW....suddenly I am hearing more and more of the so called "professionals" starting to jump on that train. Of course.......a few days ago they were all lowering their expectations for 3rd quarter earnings and talking about a bear market rally. It is so amazing that these people with their massive computer power, experts, analysts, unlimited resources and money......have no more ability to call or predict markets than a bunch of people on a simple internet investing thread. In fact if you actually calculated their long term prediction accuracy they are probably WORSE. The BIG PROBLEM......I want my big Social Security cost of living raise.
LETS MAKE SOME MONEY TODAY.....if we can get past the mid morning FADE when the euphoria wears off. Stock market news live updates: Stocks surge as investors cheer on cooler CPI data https://finance.yahoo.com/news/stock-market-news-live-updates-august-10-2022-114314128.html (BOLD is my opinion OR what I consider important content) "U.S. stocks rallied Wednesday as Wall Street breathed a sigh of relief over a lower-than expected inflation reading for July. The benchmark S&P 500 jumped 1.7%, while the Dow Jones Industrial Average surged 500 points, or about 1.6%. The tech-heavy Nasdaq Composite gained 2.1%. July's CPI report showed prices moderated last month, giving hope to investors that Federal Reserve policymakers may scale back the magnitude of interest rate hikes. Data from the Bureau of Labor Statistics indicated prices paid by consumers rose 8.5% last month over the year, reflecting a moderation from June's 40-year high of 9.1%. Consensus economists were expecting last month's reading to show an 8.7% increase, according to estimates compiled by Bloomberg. "This is a step in the right direction but keep in mind we have many miles ahead of us before inflation normalizes," Mike Loewengart, managing director of investment strategy at Morgan Stanley's E*TRADE said in an emailed note. "One month’s data point does not make a trend, however, so cautious optimism is likely the name of the game." A downward trend in gasoline prices over more than 50 consecutive days provided some relief to U.S. consumers last month after record energy costs pushed inflation to the highest reading of the cycle in June, but inflationary pressures remained strong across other components of the report. Core CPI, which excludes the volatile food and energy components of the report, remained firm in the latest reading, climbing at an annual 5.9%, unchanged from June's figure. Elsewhere on investors' radars, Elon Musk dumped $6.9 billion worth of Tesla (TSLA) stock late Tuesday after the electric carmaker’s Chief Executive Officer said he was done selling shares of the company. Musk said in a tweet that he wanted to avoid an emergency sale of Tesla stock in the event he’s forced to proceed with his deal to acquire Twitter (TWTR). On the earnings front, shares of Coinbase (COIN) rose nearly 7%, buoyed by the rally across broader markets even after the cryptocurrency exchange reported second-quarter earnings Tuesday afternoon that came short of Wall Street estimates and said user growth slowed and is set to fall further the rest of this year. Meanwhile, Roblox (RBLX) took a hit Wednesday following a harsh miss on results for the second quarter as consumers scale back on discretionary spending and the gaming industry sees a slowdown in the pandemic-fueled boom. Shares plunged nearly 6%." MY COMMENT DUH......an article about the OBVIOUS. The speculation about future FED increases is more of the same BALONEY that we have been seeing for months now. This is a waste of time. It is NOT productive for investors to waste time trying to figure out what the FED is going to do. The ONLY relevant information for REAL INVESTORS is the fundamental results of the companies that they own.
What we are starting to see over the last SEVEN WEEKS is exactly how STEALTH RALLIES happen. When least expected.....while everyone is wallowing in fear and doom and gloom, a rally happens. Day after day week after week in spurts and drips and drabs the gains rack up. After a while some people start to notice. BUT....the majority are STILL stuck in the mindset of fear. Those that left the markets.....totally miss out. ALL the people that talk about timing the markets and getting in and out to avoid the dips.......as usual.....NEVER call the bottom in time to catch the explosive early gains that are the KEY for long term investors. I am NOT saying that we are out of the woods. BUT....I am saying that the ONLY way to capture ALL GAINS is by being fully invested through thick and thin. This requires self awareness, rational risk tolerance, avoidance of trading and speculative investing, reasonable portfolio construction, etc, etc, etc. What is happening right now and what ALWAYS happens is exactly the reason that very few investors of any type.....amateur, retail, or professional......can NOT beat the SP500 long term.
Before we get all carried away today. I STILL say we are in a recession. I STILL say that in the corporate world layoffs and hiring cuts continue to escalate. Companies are going to be focused on PRODUCTIVITY. The primary way they will achieve or maintain PRODUCTIVITY is by cutting their work force.
What would I buy right now if I had some spare cash.....which I dont....it is ALL invested. I would be buying some NVIDIA. I would NOT bet the farm. BUT if I had some cash to invest I would overweight a portion of that cash into NVIDIA. NOT as a trade but as a long term investment.
So what am I now looking at in terms of.....MY.....FREE MONEY? Retirees on Social Security could see monthly benefit rise average $159 in 2023 due to inflation, estimate finds https://www.cnbc.com/2022/08/10/soc...adjustment-may-be-9point6percent-in-2023.html (BOLD is my opinion OR what I consider important content) "Key Points High inflation points to a possible 9.6% Social Security cost-of-living adjustment in 2023, according to a new estimate based on data released on Wednesday. To be sure, there are still a couple of months to go before the Social Security Administration announces just how much to expect. New government data points to signs that red-hot inflation is starting to cool. But Social Security beneficiaries may still be in for a record high cost-of-living adjustment in 2023. The Senior Citizens League, a nonpartisan senior group, now estimates Social Security benefits may increase 9.6%, based on Consumer Price Index data released on Wednesday. That would amount to an extra $158.98 per month for the average retiree benefit of $1,656, according to the group’s calculations. In comparison, The Senior Citizens League had predicted a 10.5% COLA last month based on hotter than expected CPI data. The Consumer Price Index , which measures changes in prices for goods and services, rose 8.5% in July over a year ago, a slower pace from previous months as gas prices fell. A subset of that index, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, that is used to calculate Social Security’s annual cost-of-living adjustment, increased 9.1% in July over the previous 12 months. The COLA estimate is still preliminary To be sure, The Senior Citizens League’s estimate is still preliminary. The Social Security Administration calculates the annual COLA by determining the percentage change in the CPI-W from the third quarter of the current year to the average from the third quarter of the previous year. There are still two months of data to go before the official COLA for next year is announced. Gas prices are one of the big drivers of the CPI-W, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League. Fluctuations in gas prices in the coming two months could affect the final Social Security COLA calculation. Still, Social Security beneficiaries can still expect a record COLA for next year. If inflation runs hotter than the recent average, the COLA could be 10.1%, according to The Senior Citizens League. If inflation cools, the adjustment could be 9.3%. Seniors are still struggling with inflation Social Security beneficiaries received a record 5.9% COLA in 2022. But as inflation has climbed this year, that increase has lost its buying power, according to The Senior Citizens League. This year’s benefit increase has fallen short based on inflation data through July, according to calculations from The Senior Citizens League. The average benefit of $1,656 is short about $58 per month on average and $373.80 to date this year, the group’s calculations found. A survey conducted in the first quarter by The Senior Citizens League found half of people ages 55 and up dipped into their emergency savings to cope with rising costs. Meanwhile, 47% have visited a food pantry or applied for benefits from the Supplemental Nutrition Assistance Program, or SNAP, and 43% have carried debt on a consumer credit card for more than 90 days. Older and disabled people who rely on low-income assistance may be at risk for having those benefits trimmed once the extra income from a record-high COLA kicks in, the group’s research has found. Medicare Part B premiums may be flat next year The impact of a record-high cost-of-living adjustment for 2022 was also limited due to higher than normal increases to Medicare Part B premiums. Medicare Part B premiums, which jumped 14.5% this year, are often deducted directly from Social Security checks. The average monthly premium is $170.10 per month in 2022, up from $148.50 in 2021. Much of the increase for this year was due to the cost of an Alzheimer’s drug, Aduhelm, which has since been cut in half. The savings is expected to be applied to the 2023 Part B premium. However, the Medicare trustees projected in their June annual report that the monthly premium for 2023 will stay the same at $170.10 per month. Legislation may help curb prescription costs One thing the annual COLA measure doesn’t account for is the percentage people pay for prescription drugs in retirement, according to Johnson. The Inflation Reduction Act, which just passed the Senate, seeks to curb those costs by capping annual out-of-pocket spending at $2,000 per year for Medicare Part D prescription drugs. “Any help with costs is going to make a big, big difference going forward, especially protections like caps on out-of-pocket spending,” Johnson said. That legislation has yet to be approved by the House and the president. The $2,000 cap is not slated to go into effect until 2025. Current projections from the Centers for Medicare and Medicaid Services show the average basic monthly premium may be $31.50 in 2023, down from $32.08 in 2022. However, the maximum deductible for Part D coverage is projected to increase to $505 in 2023 from $480 this year. For the median retiree, just 75% of Social Security benefits and 88% of total income are available for non-medical spending, according to recent research from the Center for Retirement Research at Boston College." MY COMMENT We now have the July data. The data for August and September is yet to come. These three months will determine the increase for 2023. the actual increase will be announced about mid October.
I have a late show tonight at 10:00. Looking forward to making some money outside the markets. I dont include any of this "show" money in my budget. So it is another source of.....FREE MONEY. Of course....it is not really FREE since I have to pay taxes on it since I get a 1099 every year. I also end up paying self employment taxes.....Social Security....on this money.
Yes it looks like the markets liked the CPI this morning and came out of the gate strong. Maybe we can hang on to it and build a bit from here.
YES......if we can build from here it will be an EPIC day. I lust looked at my account......I am now at (-16%) year to date. It is so difficult to make progress on the SP500 year to date. I need a good sustained couple of week RALLY to get back to the level of the SP500 year to date. It WILL happen...it is just a question of when. Speaking of the averages. AMAZINGLY.....the DOW is now at (-8.42%) year to date. WELL BELOW the definition of a correction. The SP500 is also close to being out of correction. It is now at (-11.82%) year to date. And.....AMAZINGLY....it is right now showing a FIVE DAY RETURN of +1.18%. Why I find this amazing is that four out of five of the past five days were NEGATIVE......and.....felt very dismal. If we can get a little three day rally to the end of this week it is likely that the SP500 will be out of correction. With 4.5 months to go this year it is actually CONCEIVABLE........I am NOT saying "probable"......that the DOW and the SP500 could end the year with a GAIN. That would simply blow everyone's mind. I have seen this happen a number of times over my 50+ years of investing. A year end rally of 10% or more does happen once in a while after a dismal start to a year.
Yes we have had some good runs here over the last bit and have even held our own here lately. A bit different than earlier and the fight back appears to be a little stronger each time. We have to start somewhere...it might as well be today!!
With what is happening above.....I know that many people will be STICKING TO their thinking that this is simply a bear market rally and stocks will soon continue their march lower. It might actually be true.....but as we rack up the gains....it will be more and more difficult for the markets to revisit prior lows for the year. That means that long term investors.....will be AHEAD. In the end it all comes down to one thing for long term investors.......YOU HAVE TO BELIEVE. You have to believe the long term data and research that shows that siting through all the various market events results in superior returns. You have to believe the PROBABILITY data that shows that the SP500 is positive about 70% of ALL YEARS. You have to have the GUTS to ignore the CRAP that is constantly pushed every day all day long. You have to IGNORE everyone trying to convince you that investing means......trading. You have to IGNORE your friends that are telling you about their big gains and that you are a MORON. BUT......as I mentioned above......to achieve financial freedom and market returns means that you have to be REALISTIC AND RATIONAL in your risk taking, portfolio construction and in your selection of stocks and funds. You can be long term all day long.....but....if what you are investing in and how you are investing is IRRATIONAL or UNREASONABLE......you will not get average returns. That is why I use the SP500 as my constant comparison to my investing results. If I can NOT beat the SP500.....long term.....I should simply be investing totally in the SP500 Index.
Actually Smokie we started three months ago. The SP500 has been positive for over three months now.......and....SIGNIFICANTLY for seven weeks now. Over the past THREE MONTHS.....the SP500 has GAINED.....+6.8%. AND to get into the longer term.....it is STILL........ in spite of the dismal start to this year and all the very FEARFUL events of this year.......up by: Three years +45.5% Five years +72.36% That is the POWER of long term investing. It is also an illustration of the FALLACY of getting caught up in the short term and losing track of how AMAZING the markets have been and CONTINUE to be. This is why: I continue to be fully invested for the long term as usual.
True. We have been making a dent in it as far back as you say. Every one of these is putting us in a better position for sure. It is important to capture those gains every time as we move along. As you pointed out earlier, over a period of time many investors will miss some very important days along the way. I want every ounce of momentum I can capture. It will turn around at some point. Is it today or next month? Nobody really knows for certain, and like you said, by the time many decide its for real....they will miss many of the early gains. This will remain true whether today is the day or if it is December.
If this is your business model.........God help you. You had better have total pricing power and no demand destruction.....plus......cut your workforce to the bone. Companies continued to 'pay workers more to produce less' in Q2, data shows https://finance.yahoo.com/news/companies-productivity-wells-fargo-192212880.html "The Federal Reserve has another problem on its hands as companies put another quarter in the books amid sky-high inflation: falling productivity. U.S. non-farm labor productivity, as measured by the Labor Department, fell in the second quarter at a seasonally-adjusted annual rate of 4.6%. That was the biggest year-over-year drop dating back to 1947 and the weakest back-to-back reading following a 7.7% drop in the first quarter, according to the Peterson Institute for International Economics (PIIE). Meanwhile, employers spent more on wages and benefits. Analysis by Wells Fargo highlighted that unit labor costs (ULC) — the cost of labor adjusted for productivity — grew at a seasonally-adjusted annual rate of 10.8% in the second quarter. "This marks the second consecutive quarter of double-digit gains and suggests businesses continued to pay workers more to produce less," Wells Fargo economists Sarah House and Shannon Seery explained in the report. Although House and Seery cautioned that productivity readings can be volatile from quarter to quarter, they stressed that unit labor cost growth "is still way too strong even when smoothing over a year or two." This creates another challenge for the Fed's plan to stem inflation while not tipping the economy into a recession. "The trend in productivity growth has worsened compared to prior to the pandemic," the economists wrote, "and the surge in unit labor costs makes the Fed's challenge of getting inflation back down to its 2% target all the more challenging." Fed, companies grapple with declining productivity Over the past year, labor conditions have caused employers to offer more compensation to attract scarcer workers, which has pressured "real" labor costs for employers to run well-above levels consistent with the Federal Reserve's goal of 2% inflation over the long run. Since labor costs are many businesses' largest expense, the economists cautioned that "if labor costs continue to soar amid falling productivity, businesses will be forced to shed labor to protect the bottom line. They may also increasingly seek to invest in labor-saving technology to boost productivity." That, in turn, could reshape the Fed's expectations. The central bank has been increasing interest rates in an effort to raise borrowing costs, slow economic growth, and tamp down inflation. "The Fed simply can't get to 2% inflation with this sort of productivity and wage growth," the economists said. "Labor costs tend to be a stickier contributor to inflation, thus the Q2 productivity data position the Fed to continue on its tightening path until it sees wage growth subside and inflation moving meaningfully lower." PIIE noted that "productivity will not continue to decline like it did in the first half of 2022" and laid out two scenarios that could lead to more stable productivity. Output could increase quickly "because the economy’s weaknesses were all in volatile components like inventories and net exports," PIIE nonresident Senior Fellow Jason Furman and research analyst Wilson Powell III wrote in the analysis. Data refer to nonfarm business sector productivity. Optimistic adjusts output by the ratio of real GDI to real GDP. Pre-pandemic trend is average growth rate from Q4 2007 to Q4 2019 for official productivity. Additionally, they added, employment could worsen "as employers rapidly shed labor that they determine they no longer need in an economy with much lower output." In the long run, however, questions remain about how companies will grapple with productivity and filling vacancies. "Will businesses be able to deploy pandemic-era innovations, including work from home, to operate at a sustained higher level or growth rate of productivity?" the PIIE experts asked. "Will other advances, like artificial intelligence, finally start to sustainably boost productivity growth? Or will the economy return to the relatively weak productivity growth of the pre-pandemic period or perhaps even something worse?"" MY COMMENT I dont care what anyone says.....two and a half years ago we were running just fine....there was no labor shortage. Than.....BOOM.....the pandemic and now.....there are NO WORKERS. Where did they go, where are they. Did they just beam off the planet? There is a FINITE number of jobs in the economy......in addition the population of the country is growing continuously. This is just insanity. The only explanation is that government benefits and safety nets have grown so BIG that it is distorting the labor force. In addition we have every larger corporation CUTTING jobs. What a big mess. Is the simple answer that no one wants to work anymore and many have figured out how to not work? I dont know.....but it seems like the more we advance with technology and tech.....the less people are able and willing to actually.......GASP......work. At least here in the USA we are becoming a nation of self absorbed, narcissistic, WIMPS.
KILLER day today. EVERY stock in the GREEN.....strong green. Plus I got a good beat on the SP500 by 0.52%. This is exactly the type of day we need to KICK the markets in the ass for the rest of the week.
This should give us a definite LEG UP for the markets tomorrow....although I will NEVER own this stock. Disney subscriber growth blows past estimates, as company beats on top and bottom line https://www.cnbc.com/2022/08/10/disney-dis-fiscal-q3-2022-earnings.html "Key Points Disney posted better-than-expected earnings on both the top and bottom line, bolstered by increased spending at its domestic theme parks. On Wednesday, the Walt Disney Company reported that total Disney+ subscriptions rose to 152.1 million during the fiscal third quarter, higher than the 147 million analysts had forecast." MY COMMENT The earnings beats continue.
For anyone that might be living under a rock....here is what happened today in the markets. Stocks soar, S&P 500 hits highest level in three months after key report shows slowdown in inflation https://www.cnbc.com/2022/08/09/sto...vestors-brace-for-july-inflation-report-.html (BOLD is my opinion OR what I consider important content) "Stocks rose sharply on Wednesday after a key inflation reading showed a better-than-expected slowdown for rising prices. The Dow Jones Industrial Average jumped 535 points, or roughly 1.6%. The S&P 500 gained 2.1% and hit its highest level since early May, while Nasdaq Composite rose 2.9%. The headline consumer price index for July rose 8.5% year over year, and was flat compared to June. Economists surveyed by Dow Jones were expecting increases of 8.7% and 0.2%, respectively. Core inflation, which strips out volatile food and energy prices, also saw a smaller-than-expected increase. The Federal Reserve will weigh the report, along with other key economic data, ahead of its September meeting where it is slated to hike interest rates again. “The deceleration in the Consumer Price Index for July is likely a big relief for the Federal Reserve, especially since the Fed insisted that inflation was transitory, which was incorrect. ... If we continue to see declining inflation prints, the Federal Reserve may start to slow the pace of monetary tightening,” said Nancy Davis, founder of Quadratic Capital Management. Major tech stocks outpaced the broader market on Wednesday, with Facebook-parent Meta rising 5.8% and Netflix gaining more than 6%. Salesforce was one of the best performers in the Dow, rising 3.5%. Stocks close near highs of the session The major averages closed near their session highs, with the Dow up 535 points, or 1.6%. The S&P 500 gained 2.1% and the Nasdaq Composite rose 2.9%. The small-cap Russell 2000 soared nearly 3%. Volatility Index quiet into the close The Cboe Volatility Index is holding below 20 in the final minutes of trading. This would be the first time in 90 days it has closed below that level. Since 1990, that would be the 10th longest such streak, according to Bespoke Investment Group. Recession fears are calmed, for now The combination of a strong jobs report and slowing inflation in July means the debate about whether the U.S. economy is in a recession can be put on the backburner, according to a prominent economist. “The whole recession narrative really needs to be put on a shelf for now,” said Aneta Markowska, chief economist at Jefferies. “I think it’s going to shifting to a stronger-for-longer narrative, which is really supported by a reversal in inflation.” Markowska projects that U.S. GDP will grow at a 3% rate in the third quarter, but said the U.S. is likely to have a recession in 2023. Goldman, Citi pop as bank stocks outperform Bank stocks are outperforming on Wednesday, even as the July CPI report appeared to spark a move lower for interest rates. Shares of Goldman Sachs and Citigroup have gained more than 3% each. JPMorgan Chase and Wells Fargo have popped more than 2% apiece. Smaller banks are also holding their own, with the SPDR S&P Regional Banking ETF gaining 2.6%. This morning, Piper Sandler listed small banks that could be smart bets during a recession. Check out the list on CNBC Pro. Volatility index falls below 20 The Cboe Volatility Index dropped below 20 on Wednesday and is now trading at its lowest levels since April. The index is based on the expected volatility implied by the options market. It is sometimes called Wall Street’s “fear gauge,” and tends to spike when investors are more uncertain about the future. CPI data shows promise but ‘one month doesn’t make a trend,’ Independent Advisor Alliance’s Zaccarelli says While one month of slowing price increases signals that inflation is moving in the right direction, more data is needed to show a continuous trend, said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance. “One month doesn’t make a trend, but at least headline is coming down and core stopped going up,” he wrote. “If we see future months’ data showing a decrease in inflation, then it will help markets see the end of the tunnel in terms of rate hikes.”" MY COMMENT There is more in the above article that I did not post so click on the link if you want to see the whole thing. Bottom line........a big surprise for the "experts" and for the markets. Will this data that we got today have legs with the markets......I dont know. I suspect that a lot of people are NOW considering getting back into the markets so they dont look DUMB to their clients.
