So if you cannot bring down the inflation rate then you change how it's calculated. What's going on? Team: it's Ricky here with Techbook Solutions I Just realized my camera is kind of slanting I Do apologize for that. Uh, but one of the things that I wanted to update you guys on is something that got brought to my attention and it's how the CPI data report is actually being calculated. Now this is one of these second updates that was provided to us by the Bls.gov which is the actual Uh website that is used to release that CPI data report.

So I actually want to show you? Let me start sharing my screen so you can see exactly what it is that I'm looking at. And one of the things that I found to be very interesting is one of the most recent updates is measuring price change in the CPI for new vehicles. Yes, that is correct. They changed the way that they calculate used vehicles and new vehicles and then the influence and the weight that it carries in the CPI data report.

And you know the part that I find to to be very interesting is that. well we barely dropped from 6.5 percent to 6.4 percent and the CPI data report that was released yesterday and if you look at new and used vehicles you can actually see that we saw a drop of negative 1.9 points and only saw an increase of 0.2 points. Now this is after the update. this was the first reporting with this new update on how they measure new and used vehicles and the I just I Find this to be so funny because this is actually following a second update where a lot of the CPI data is now only going back three years instead of five years and you might be asking Well Ricky Why does that even matter? Why does it even matter when calculating the CPI data report if they only go back three years and use that data instead of going back five years which is what previously was being used, Let me give you a very like pretty example.

Let me go back to my face real quick. I Want you to understand the influence, the change, the impact that this has on the CPI data report. If I were to ask you, hey, let's go back five years and calculate what the cost of the average rent in the United States was or the average mortgage, right? The average property value five years ago versus three years ago, right? There's going to be a significant difference from five years to now, but now if you go back only three years, then the rate of that difference right is much less. and especially when trying to calculate inflation.

If we're only going back three years. but we previously with every CPU every other CPI data report, we're going back five years, then yes, it's going to then look like inflation is actually lower. but all we really did was we're just not looking as far back as we used to So we're simply just changing the way the CPI data report is being calculated and that's exactly what is being shared. Uh, in this specific article I wanted to share with you guys and the way that you can actually access this is you go to Bls.gov forward slash CPI and then you go to the about section and if I'm not mistaken, it's under notices and then these are the most recent notices that you can see for 2023 and you can go to Every notice back to 2022 too.

But the reason that I find this to be so just interesting is because of what we experience in the month of January right? Because of this update. Now we're seeing again. There wasn't many things in the month of January that actually saw a drop right? unlike December But in January we did see only three drops we saw Medical Care Services We saw a drop in used cars and trucks right. and then we saw a drop in fuel oil if I'm not mistaken And when it comes down to new vehicles, we saw a very small increase.

But my question is a thing that I'm kind of just like scratching my head is: would the increase that we would have seen in new vehicles have been much more significant to the point where inflation would have been reported at 6.5 percent or higher instead of what was reported at 6.4 percent? Now, this isn't the first time that the you know Bls.gov website or you know how they update Uh, the CPI data reports is updated right. They make these adjustments because in reality, yes, it's probably more realistic. Uh, to look back only three years because of the big change that we've seen, uh, in our economy, right? Um, I Just thought it was interesting on how this is having an impact on our current CPI data report and the ones to come as well. Because again, it goes back to that simple principle.

Well, if you can't bring down the inflation rate based off of our current measure of calculation, then just change the way that it's being calculated. meaning provide less data. It has less of an influence, less weight. So therefore inflation rate can actually come down quicker.

And I Think this is why we're seeing a lot of people in the comment section comment that is not the true value of the CPI data report. You know the Bls.gov or BLS Bureau of Labor Statistics It's just you know, cooking up the numbers or whatever the case might be I wanted to provide a little bit more of a wine. That's exactly what I like to do on this channel where we like to shed some light in areas where some people might not fully understand where that concern is coming from, right? But now you guys do. Right now, they're simply just changing the way that the CPI data report is being calculated and hopefully this kind of just brings awareness to that and you can look a little bit more into it so you can understand the influence that it's going to have for up and coming CPI data reports.

Overall, one of the things that I want to show you very quickly is the Market's reaction to the retail sales. So the big report today was one hour before the market opened. Retail sales came out and it came in a little bit hotter than expected, meaning that the economy is actually doing a little bit better than expected. Now is this a good thing or a bad thing? Based off of the Market's initial reaction, the NASDAQ Market went down a little bit.

It's still down a little bit. It's pretty much break even on the day. I wouldn't be too concerned about it. All it tells us is that the economy is actually doing better than expected.

It's the economy is not cooling right and the Federal Reserve is. Well, that's exactly what they want. They still want the economy to slow down, and by seeing that the economy is actually doing better than expected, then remember right now: bad news is good news and good news. it's bad news.

This only means that the Federal Reserve can justify being more aggressive with future interest rate. if inflation data actually comes in hotter than expected though. I Just want to provide you guys with that update if you guys have any specific questions about what we talked about today, please: I Hope that you know that I'm always one direct message away. I Personally think that the NASDAQ market and overall Market will begin to drop because of that bad CPI data report and how the Federal Reserve will actually interpret that and actually be more aggressive with up-and-coming interest rate hikes? That is my assumption.

That is my opinion. It doesn't mean that that's what has to happen. I Just explained why in yesterday's video and I made sure our Learn Plan Profit Team was aware of it, especially as we lack progress in making new highs for the past week on the NASDAQ and the S P 500 we have seen no more progress. We're very overbought and in my opinion we're due for a pullback.

I'm just waiting for confirmation to really step on the gas, but again, that's something that I break down and do every single morning with alarm. Client Profit Group So I do trade live exclusively with one team and one team only. I offer nothing else if you like the way that I break things down and you want the ability to watch me trade live, you see my entries, you see might exits live in real time, and most importantly, you hear my thought process. It's my Learn Plan Profit Group.

It's the second link in the description down below. We're running our biggest sell to 150 off and again it is a one-time payment, lifetime access and you can watch me trade live as soon as tomorrow and every day moving forward. I Really do appreciate you guys time. If you have any questions, shoot me a direct message via Instagram or via Discord and that's that first or third link down below.

And don't forget uh for our 30 off sale the entire site for Shoptechputs.com and that's that fourth. Link in the description I Am using the Weeble trading application and it's free and available to everyone in the US and if you want to earn up to 12 free shares, all you have to do is click the fifth Link in the description Down Below Download and sign up for Weeble. Deposit only one dollar and you can earn up to 12 free shares with their limited time promotion going on right now I Appreciate your time like always, let's make sure that we're in the year on. Agree now! take it easy team.

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