Is inflation over what's going on? Team? it's Ricky with. Talk about Solutions I Wanted to share an article that I read that I found to be pretty interesting. You guys can let me know down in the comment section if you agree or disagree. Uh, but this article was titled the stock market is poised for a significant year and rally meeting that the stock market is expected to Rally by the end of the year, Right? Because inflation is basically over. Uh, now. One of the things that I want to talk about is what is sad and why that's that's the most important thing. So pretty much so. this guy named Jeremy Siegel that says inflation is basically over based off of the Thursday uh October CPI data report for those that are unaware CPI data report came out Uh. expectation was eight percent previous. CPI was 8.2 percent so we expected it. You know to drop from 8.2 to 8. It actually dropped to 7.7 Way lower than expected. This is why the market rallied. as you guys could see right on over here. It had the biggest screen day for the NASDAQ Market of all of 2022 and that was the day of the CPI data report. Triple leverage ETF Tqq went up over 20. Imagine that making 20 in just one day. That's exactly what Tqq did. With that being said, what is it and why is it that he's saying that the market could rally towards the end of the year? And it's all because of the Federal Reserve's interpretation of the CPI data report because it did come in lower than expected. Again, why has the market been selling off? It's been selling off because inflation has been really high and then the Federal Reserve was front loading interest rate hikes a lot of you guys might have seen just like they did one the earlier this year. I'm sorry. Earlier this month they did a 0.75 interest rate hike. Uh, that was the fourth consecutive interest rate hike of 0.75 percent. When they raise interest rates, you know the market ended up selling up. This is why we were doing so all shorting the market. but now because of this last CP API of 7.7 percent. This is good because one thing that we've talked about so many times is something not getting worse is good for the stock market. Just like in 2020 when you know covet hit and the stock market pretty much crashed right? It sold off very aggressively within a very short period of time. I Think it lasted like a month and a half. If you guys remember, it wasn't that Covid was no longer an issue, but it was the idea that Covid wasn't getting worse. If anything, I mean it was still very present. It was still a big concern, right? it was around. March But guess what? the stock market began to rally and it's when things are not getting worse that they are getting better. And I think with that you know approach. I Can see where this is coming from, Where if inflation is consistently now coming down again, that's a big factor, right? It's just the one reading. but because inflation is consistently coming down from its 9.2 percent to now 7.7 percent, the Federal Reserve can justify being less aggressive in the way that they raise interest rates for those that are unaware. Again, I Like to keep you guys up to date with up-and-coming economic reports I Do this on my channel, so make sure that you guys subscribe, but we have an Fomc minutes meeting that's going to be Wednesday Day November 23rd the day before Thanksgiving And this is where the Federal Reserve will talk about the previous interest rate hike and then try to give some guidance for the up-and-coming interest rate hike that they plan to do. But the reason that we have Siegel is saying that the market could rally is because things if they are not getting worse, they are therefore getting better. And that's how always the stock market has reacted. And if we do see that inflation is consistently coming down, then therefore the Federal Reserve can justify being less aggressive. and in my opinion I thought this just meant from 0.75 percent that they would drop it down to 0.5 percent with their interest rate hikes for the for the month of December. But Siegel is saying that he would not be surprised if they were to only do 25 basis points. If this were to happen, then I do agree with them. That would be a Fed pivot meaning that they're not going to be as aggressive as they were and then the market can rally right because when things are not getting worse, they should be getting better. And the stock market? that is all that is needed, right? This isn't like the real estate market where you know interest rates go up and then it takes a couple of weeks or a couple of months for the market to react. The stock market is instant, everything gets factored in, and as soon as we got that CPI data report I Want you to understand the reason that the market gapped up so much is because of what's getting factored in. And it's that if things are getting better and the Federal Reserve sees it as that and it doesn't matter what we think, it doesn't matter what I think it doesn't matter what you think, it matters with the Federal Reserve things. and if they justify a lower interest rate hike and they do the 0.25 then I do agree with Siegel We could see an end of the year rally and this could really only be the beginning. Now I Do want to share this with you. There is one thing that he said that I think is very important he said, but just because stocks may rise and to the end does not mean that investors should load up in tax docs instead. Siegel is more bullish on value oriented and dividend-paying stocks and recommends investors to do both hold value and growth in a balanced portfolio. I Think that is what is important because it's not so much about trying to be super aggressive because things are still uncertain. But the thing that I want to talk about is if things are simply not getting worse and we can see that based off of the last CPI data report, then this is very encouraging for long-term growth because at that point it's not. If this is the bottom right, it's not that old man. Maybe the stock market can sell off a little bit more, right? You'll never be perfect. Your entries will never be perfect, your exits will never be perfect. You should get that out of your head right? The the focus should be just to be good to get in at a good price, and for our long-term investors for our swing. Traders Right now is the time, right? because it's asking the question: Are we closer to the bottom than we are to the top? So therefore risk to reward ratios or upside should outweigh our downside risk. So this is where you need to be careful with your position size, but also to not be afraid to take advantage of opportunities. As with this 7.7 reading again, it's not that this is the bottom, but it's that things are not getting worse anymore. and because of that that is encouraging, right? This is where I can then begin to justify in taking 25 to 30 percent positions in the long-term positions that I intend to hold right where I don't need the stocks to indicate signs of an uptrend right away, but all I know is that I'm getting at a good price when the market is beginning to potentially pivot. Hopefully just like the Federal Reserve right? I Wanted to share this with you guys I thought it would be. You know something worth thinking about. My job here on YouTube is not just to make you aware of these different economic reports, but also to share ideas with you of what other investors are potentially thinking. So you guys can let me know down in the comment section because of what happened with the last CPI data report coming in. Better than expected. If the Federal Reserve does pivot instead of the 0.75 interest rate hike and then begin to go to 0.5 or 0.25 percent, Do you think that the stock market can rally and what are you doing to prepare right? It's not about predicting the future because you can never predict. it's about preparing for the future. So what are you doing now to prepare for a better tomorrow? That's what I wanted to leave you guys with so hope and wish you guys an amazing weekend. Hope that we earned a thumbs up. Please consider subscribing. 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