The Consumer Price Index (CPI) inflation numbers are in.
And they are hotter than expected.
The CPI’s month-over-month reading was 0.1% versus the -0.1% expected by economists.
The CPI’s year-over-year print was 8.3% versus an anticipated 8.1%.
The Fed also pays close attention to a print known as core inflation — this is the CPI excluding food and energy. This number came in at 6.3% versus 6.1% expected by economists.
As a result, stock indexes turned downward.
Here’s what you can expect in this volatile market going forward…
The Fed Fights Back Against Inflation
With inflation continuing, markets expect the Federal Reserve to raise the fed funds rate by 75 basis points (bps) next Wednesday, September 21.
Strategic Fortunes Editor Ian King notes that, as of today, the fed funds futures market is predicting a 20% chance of a 100-bps rate move this month!
And looking out to November 2022, markets are expecting the Fed to raise rates by another 50 bps on November 2.
So what does this mean for you, Winning Investor Nation?
I know it’s always hard on days your stocks are down.
While you may not feel it now, you’re actually getting ahead, while others are giving up.
That’s because we have our eyes on the future and big money over time.
These are the moments that count. Here’s what Ian shared with me this morning…
He believes the brunt of the bear market is over and what we’re dealing with today is noise.
He also believes the market lows we saw in June were likely the bottom.
There are signs the economy is slowing.
As Ian mentioned in yesterday’s Monday Market Insights:
The economy is slowing down.
I mean, you look at mortgage rates. The housing market is the slowest it’s been since the financial crisis. And for what the Fed is trying to do by slowing the economy down to rein in inflation, it’s worked so far. We’re heading in the right direction. They haven’t finished their job yet, but what they’re doing is working.
In all, just know that the stock market does not go up in straight line.
There are dips and dives along the way to profitable investing.
The key is lots of patience.
Now is the time, during this bear market, to build your next-gen portfolio with key growth investments. We’ve earmarked these positions for substantial gains as this bear market eventually ends and the 2.0 bull market in our portfolio begins.
Stay strong, Winning Investor Nation.
Now is the ideal time to put in the hard work of buying fundamentally strong, future-forward investments at steeply discounted prices.
Buy low. Buy slow. Our time is coming.
And our next-gen 2.0 stocks will win BIG.
Until next time,
Director of Investment Research, Strategic Fortunes