In this July market update, Caleb Tucker, CFA®, Director of Portfolio Strategy, reviews inflation as it continues to be a top concern for the markets, corporations, and the Federal Reserve. We could continue to see some volatility in the headline inflation numbers as energy prices continue to fluctuate, however we do still expect energy prices to come down. Some of the key points for July’s update are:
- Core inflation peaked at 6.5% in March of this year and has been slowly trending downwards since.
- We are starting to see some elements of slowing economic activity show in the data.
- In April the yield curve inverted for a few days, but we have had more sustained inversion recently, as short-term yields have increased, in response to rate hikes from the Federal Reserve.
- When we see sentiment at extremely low levels like we do now, that can create better buying opportunities for stocks.
We hope you find this video educational and informative. If you have any questions, please reach out to your advisor. As always, thank you for putting your trust in the Merit team.
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