Inflation rising???

In October 2023, overall inflation was expected to reach 3.3% year-on-year in the US, according to economists, and it came in at 3.2%. That’s much better than September’s 3.7%, thanks to the drop in gasoline prices.

The favorable CPI data further underscores the growth potential inherent in U.S. markets. This trend not only diminishes fears over a potential rate hike but also strengthens the position of long-term investors who have placed their faith in the resilience and dynamism of the U.S. economy.

Core inflation, which excludes the most volatile items from the calculation, was also lower than expected, at 4.0% instead of 4.1% expected On a monthly basis,

After these figures were released all three Wall Street indexes shot up, with the Nasdaq 100 up 1.6%. The yields on the US 2 to 10-year bonds fell by at least 15 points. The dollar also plunged against other currencies.

 Tomorrow’s meeting between Joe Biden and Xi Jinping may move the  inflation numbers meter. The press expects the two leaders to sign an agreement enabling Beijing to attack the chemical companies that promote the production of Fentanyl. This would make a major impact on the war on drugs and the manufacturing of Fentanyl bringing some resolve to the toxic issue both country are having presently.

It’s important to focus on these silver linings amidst the broader economic challenges we face with inflation and view them as opportunities for continued investment.

As history has shown us, patience and perseverance in investing, especially during times of uncertainty, can lead to significant long-term rewards.