So with the u.s economy on the verge of entering a recession in this morning's cpi report announcing a 40-year high inflation rate, the question is: is there any positive outlook that we investors can hold on to well in this video, we'll answer that question and explain why You should remain hopeful and also examine the cpi report to see where the price increases are coming from and, most importantly, what these numbers mean for the economy if you are liking, these daily market updates be sure to like this video down below and subscribe. If you haven't done so already and with that being said, let's hop into the computer happy friday happy june 10th, let's get into it. So, just like we mentioned yesterday anytime, we have the feds talking about inflation reports. We always see volatility rocking the market up kind of like a little boxing match.

We have the global crypto mark cap sitting at 1.21 trillion dollars and many of the other all coins within the market still having a bit of a pullback. This includes ethereum now down to 1728. Once again, we have cardona down about eight percent and then polka dot under 10 and then even a lot of the cryptocurrencies that once held very strong, are now getting wrecked even more once again, so bitcoin has been fluctuating between the 29 500 and 30 500 level. For the past 24 hours as it struggles to break above the 100 ema, which is that blue line on the four hour chart, currently, the rsi does remain low around the 40s, suggesting that we could see some higher price action over the weekend.

Taking a look at the weekly chart, bitcoin is just barely in the red currently down less than one percent at the time of filming this video. Now, if we wanted to end this week with another green candlestick, we would need bitcoin to remain above the 29 900 level. Currently, the rsi on the weekly chart is in the low 30s indicating that bitcoin is very close to being oversold. Also, just a little bit of history, the rsi has not reached these levels since march 2020, when the covet pandemic first crashed the markets.

Now what this means is, although we may not have seen the market bottom hit, necessarily just yet it might be getting pretty close. According to the crypto fear and greed index, we are sitting again at a level 13 with extreme fear all around the market. Now going into the topic of the video. According to the bureau of labor statistics, the cpi report from this morning also known as the consumer price index, which is often considered to be the best gauge for inflation, rose one percent in may, bringing overall inflation for the past year.

Up to eight point: six percent: now this marks the fastest increase in inflation since december of 1981, and the one percent of may compared to the 0.3 percent in april, shows that inflation right now remains strong. Despite the rising interest rates and quantitative tightening from the federal reserve now these inflation numbers were considerably higher than the average estimates coming from economists and different market experts. Looking at the report's specifics, the most significant contributor to the growing inflation rate for may were shelter, food and gasoline costs. On top of that, energy prices rose 3.9 percent from a month ago.

Bringing the annual gain to 34.6 gasoline specifically rose 4.1 in may, bringing the yearly increase to 48.7 percent. Think about that gas is almost up about 50 percent. Everyone's freaking pockets are hurting right now and they are they're just they're doing one of those things now. What we're seeing is this wide gap between america's demand for gasoline us needing it, because we still drive cars, we still need to commute and the overall supply being lifted, which in turn the average gas price per gallon, brings it to an all-time high of 4.98.

Now the index for fuel oil increased about 17 in the past month and more than doubled in the past year, rising 106.7, which is representing right now. Actually, the largest increase in the history of the cpi report series dating back to 1935.. Now, on top of that, food food has gotten a lot more expensive, so food costs climbed another 1.2 in may, bringing the year-over-year gain to 10.1 percent and according to the bls, that is the first increase of 10 or more in over 40 years now. In addition to that, new vehicle prices jumped 12.6 and used vehicles went up 16.1 percent, so vehicle costs are considered a leading indicator of future inflation numbers and it's also been falling for the past three months.

So this means is mace. Increase negatively affects the current economic outlook, some bad news, though we have to mention for any type of people traveling right now, the airfare index rose 12.6 for the month of may bringing the annual gain to over 37. So, if you guys are thinking man, i feel like uh plane tickets are getting a bit more expensive, it's not just because they happen to be during whatever time, you're booking your travel, it's because of current inflation rates. They literally are now just to touch upon what we said yesterday.

What i mentioned earlier in this update the markets had a reaction to the report of the inflation coming out, and obviously it was not good if we take a little micro in-depth chart into the bitcoin's five-minute chart. You'll notice that there's a huge red candle from 8 30 a.m, eastern time, which is when the cpi report was released. Additionally, the sv 500 and dow jones also both fell about 1.5 on the market open with the nasdaq dropping almost two percent. So i know a lot of you guys question: why do inflation reports have anything to do with stock markets and other investments, so this article here by investopedia breaks it down better than in any way.

I could explain it to you all, so they state investors, the federal reserve and the businesses continuously monitor and worry about the levels of inflation for anyone who doesn't know yet. Inflation, the rise in the price of goods and services reduces the purchasing power of each unit of currency. Rising inflation can be harmful, input, prices are higher, consumers may lose purchasing power unless their income rises and monetary policy measures to contain inflation can damage growth and employment. So they state here at the bottom line investors try to anticipate the factors that impact portfolio performance and make decisions based on those expectations.

Inflation is one of the factors that may affect a portfolio in theory. Stocks should provide some hedge against inflation, because a company's revenues and profits should grow with inflation. After a period of adjustment, however, inflation's varying impact on stocks tend to increase the equity market volatility and risk premium, and high inflation has historically correlated with lower returns on equities. So what this means in translation of the current economy is that the escalating prices that we're seeing all across the board because of this crazy inflation, we're seeing right now means that workers are gon na have to see another pay cut.

During may, we have real wages, which are accounting for inflation, also falling for the past month, and even though average hourly earnings rose about 0.3 percent. Many analysts believe that the inflation right now is outweighing the growth that we're seeing within people's paychecks. Now inflation has also hit a new 40-year high, and these figures reinforce that it's still going on it's still on fire and we have not seen the peak of it just yet. Investors and economists alike are raising prospects, that the federal reserve will keep increasing interest rates aggressively for a more extended period than we initially expected.

The federal government, which is committed to half point hikes at each of its next two meetings, will have to maintain that aggressive stance through its september meeting and possibly even into the fall months. So what does this mean for the entire future economic outlook? What does this mean for the end of the year? Well, my non-financial opinion to my drunk nation. Today's cpi report increases our chances of entering that recession if it's not already claimed yet the federal government's gon na need to control and double down this inflation, which will directly affect consumer spending and slow down economic growth even more now, by definition, for anyone who still Is not clear on what a recession is technically declared. It's a period of temporary economic decline during which trade and industrial activities are significantly reduced, generally identified by fault in gdp in two consecutive quarters, so the gdp did decrease in quarter, one by one point four percent and we'll find out towards the beginning of july.

If this continued throughout quarter two, i think it's clear to say, though we are in a recession, i think, by the time july comes around. It's not going to be any type of shocking news, but we will see it on cnn. All those news outlets and they're going to have new headlines to get people start screaming at the top of their lungs that we are in a worse state for the economy. Now, while you may see that fud be expected to see that fun, i'm giving you a warning, it's gon na happen, there's still some hope that we investors and consumers can hold on to.

So i will say rate hikes and quantitative tightening typically take several months to have a noticeable effect on the economy, so the recent federal reserve actions in may still won't be reflected. Yet we're actually gon na be able to see what happens. I would say quarter four of this year now, while all this news doesn't seem to be great, i am still very optimistic that the aggressive monetary policies will soon control consumer prices and we'll be able to spend less of our hard earned money on everyday goods, regardless Of if we're in a recession or not with all the money that people are generally hoarding during this time, where everyone's spooked, i think we are going to get some additional movement happening in the market and hopefully we get some crypto action too. Now, in off chance we do enter a recession.

This will still open up opportunities for you to double down on long-term investments. When stocks and crypto prices don't just go on a discount, but they literally go on a fire sale. They are going on that 99 off clearance rack now, if you guys want me to make a video on how to prepare and make money during a recession and what you can do step by step, a full guide, let me know in the comment section down below So if you guys are one of the many few that are looking to dollar cost average up into the market and you're, not letting this fear shake you up, i know time in the market is nearly impossible, many often than not, but what if i told you, There's an automatic way to do it 24 hours a day. Pinex is actually one of the first crypto trading bot companies to get a license in the us, and they allow you to use these automatic trading bots that get your money put it in, and then they buy up that dip for you.

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If you want to start taking advantage of trading bots in your investment, don't forget to use my link down below in the description and thank you to pinex for sponsoring this video now to wrap this video up. Like the usual. Don't forget to follow me over on twitter and on instagram. If you do follow me, please watch out for scammers and impersonators sending you a dm and follow as well.

On top of that, if you guys want to have access to one of my private groups, don't forget to check out the patreon link down below to join our discord. Where you get access to me, my community, and also some pretty fire giveaways that we've been having. As well now, ladies and gents, like the usual, thank you all so much again for watching this video today's code word for the end of this. Video is going to be goblin and comment down below goblin, if you guys made it to the end.

Thank you all. So much for watching and until next time, peace out.