Consumer price inflation rises 8.5% Y/Y, less than expected, in July. Is this cause for celebration? Did we finally manage to beat inflation and things are getting better? Not so fast.
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*Disclosure: I only recommend products I would use myself and all opinions expressed here are our own. This post may contain affiliate links that at no additional cost to you, I may earn a small commission.
๐๐ Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
DISCLAIMER: All of Tom's strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching Tom's videos, please don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
since when do you get results from the gym in a week lol
This is so annoying the fact that people talk about huge inflation and recession and market crash and itโs happening oposite market is booming, all stock 50% up in a week! Bullshit
Love your content Tom – youโre the only finance guy I follow and happen to be a bull on the same ones you are!
Workout for a week and begin seeing results? Tell me you donโt workout without telling me you donโt workout.
Just a quick though Tom. Letโs say fed in the best case scenario doesnโt raise rates.
The US has problems with russia. Now the us had problems with china and donโt think for a second they will back of from taiwan. Europe is in trouble like f*cked up. The river that used to be a way for shiping goods from germany is drying. Inflation is through the roof. American companies sell goods and services to the whole world. A very sumple fact is that russia is out of the way which is a big market. China will be out as well very soon because of tensions pelosi created. Europe which consumes lots of gds and services from the us is actually in a recession or geading towards one. Can you imagine earnings for american companies within the next 6 months. What i mean is letโs forget interest rates, job numbers, negative gdp, negative real yields + inverted. What i just said i think is more than enough to bring us companies to their knees. What do you think of that
The fact we are cheering on 8.5% inflation is frightening stuff. Iโm lost for words ๐คท๐ปโโ๏ธ
He never fails with these analogies lmao
I still think the Fed will continue to raise rates, but maybe we'll bring it back to 50bp. Then 25bp once cpi is below 6%
TLT went down which is odd because it should be inverse. If rates went down, TLT should have gone up.
Then again the dollar is weaker so maybe thatโs why itโs down? ๐คท๐พโโ๏ธ
bull ride till end of september i guess
Fed is a Wall Street policy, but letโs just hope theyโre not as dumb as we fear they are
If Justin shaves his head he has to dress up as One Punch Man for halloween.
Our โleadersโ are doing just great, arenโt they?
Bullwhip effect.
I wonder however if there is somewhat of a lag between higher interest rates and its effect on inflation so perhaps inflation may go down further without another rate hikeโฆ.
What tool(s) did you use to create that cool background along with showing the CNN video next to yours? I love that setup.
Tom we don't always agree. But guaranteed your analogies make me laugh.
8.5%๐๐
What about shadow inflation #?
You lost me at go to gym…
That thumbnail Tom ๐
The FED was LATE to start raising rates; they will be EARLY to stop raising rates. The FED is TERMINALLY ADDICTED to QE.
I like sashas insight on this, and the fact that housing is major lag. I think on a whole there is still alot of hurt to be had
8.5% and people are happy, what a bizarre time ๐
They lying to us.
The Fed will do what the politicians direct, or more raids will occur.
Shocking lol. It's way higher. They always lie
1. The Fed said they'll slow down unless inflation shoots up again. So no more 75bp hikes.
2. They do this because the effect of rate hikes are delayed by up to 6 months. They have to be careful not to trigger a big recession for no reason.
3. Also inflation has always expected to be transitory. As I explained a million times by now, a long series of unexpected events kept driving up inflation. Now that we are hopefully through the crazy times, inflation should come down on it's own. Therefore the Fed shouldn't go much over neutral, and they never planned to.
4. The analogy is fundamentally flawed. You have to go to the gym regularly to stay in shape, but the Fed rates don't have to be above neutral to keep inflation down. Also there aren't many disadvantages of working out hard, but rising interest rates too high have absolutely devastating effects. So the Fed has to walk a fine line between a runaway inflation and a recession. So far it seems like they are doing a good job, considering the exceptional circumstances.
Minor detail for the CNBC anchor, that term for inflation is "transitory." Calling inflation "transient" implies it is homeless
It's funny how my savings account interest went down I used to get 50 cents every 3 months now I'm only getting .18cents I'm seriously considering getting my cash out of the bank account because if they make a programmable digital dollar trackable controlled by the government it's the end of freedom as we know'll my dollar bills will be worthless but maybe to somebody I don't know I know they want to destroy the middle class and ruined that US dollar and replace it all the economic form said it in black and white in davos this year exactly how they're going to come to power attack the poor first love your insights comrade
The bull steepening of an inverted yield curve is the real signal of a recession coupled with falling inflation and low consumer sentiment things don't look good.
Even if the FED do ease, it will at least give a break and let the stock market return to a bit of a higher place allowing it to be stronger to absorb any further fears and the incoming QT, because the rate increases aren't the only thing that will cause stocks to stagnate or dip, even though a lot of stuff has been priced in for months. We still may have some challenges ahead, but overall, the upside potential is still greater than the downside. That's my opinion from my point of view. The FED should maintain the plan until inflation significantly shows it's going down. 0.50% rate increase next month.
Inflation is still awful. The FED has solved nothing to date. And that latest Spending bill wonโt help.