Many investors believe that the market follows the FED's monetary leadership. This sounds right because the FED is the 500 pound gorilla in the market right? It has Trillions of dollars at its disposal and isn't afraid to use it. But is this actually the case? Believe Your Own Eyes: Central Banks FOLLOW the Market By Elliott Wave International 3 Videos + 8 Charts = Opportunities You Need to See. Join this free event hosted by Elliott Wave International and you'll get a clear picture of what's next in a variety of U.S. markets. After seeing these videos and charts you will be ready to jump on opportunities and sidestep risks in some major markets. This free … [Read more...]
Monthly Inflation Spikes in August
The U.S. Bureau of Labor Statistics released the Annual Inflation Rate data for the year ending in August on September 14th 2017. Annual inflation was 1.94% in August up from 1.73% in July. CPI-U 245.519 Monthly Inflation for August 0.30% Next release October 18th According to the U.S. Bureau of Labor Statistics (BLS) - "Increases in the indexes for gasoline and shelter accounted for nearly all of the seasonally adjusted increase in the all items index. The energy index rose 2.8 percent in August as the gasoline index increased 6.3 percent. The shelter index rose 0.5 percent in August with the rent index up 0.4 percent. The food index rose slightly in August, with the … [Read more...]
How the Inflation Cycle Influences the Job Market
Inflation is generally a gradual process, so most people don't put much thought into inflation, since it happens so slowly. But certain things can cause inflation to occur at a faster rate than it normally would and at times countries even experience hyperinflation like Zimbabwe did several years ago and Venezuela is now. But even when it is gradual, creeping inflation can have a major effect on just about everyone. Generally, when we think of inflation we think of rising food prices. But although you might never have really thought about it, inflation can have a huge impact on everything from food to cars to the job market i.e. both products and services. Here are a few ways that inflation … [Read more...]
OECD International Inflation Rates
On Friday August 11th the OECD published the Annual Inflation Rates rates of its member countries plus several other countries as well. Noticeably absent is Argentina. The OECD included the following footnote: Data for Argentina are currently not available due to the state of emergency in the national statistical system declared by the government of Argentina on 07 January 2016. As a consequence, Argentina is not included in the calculation of the G-20 aggregate. The policy regarding the inclusion of Argentina will be reconsidered in the future depending on further developments. In November 2015, Mauricio Macri was elected in Argentina under the platform of reforming the government of … [Read more...]
July CPI Down But Inflation Up
The Bureau of Labor Statistics Released the Inflation Data for the Year ending in July on August 11th. Annual inflation was 1.73% in July - Up from 1.63% in June, but down from 1.87% in May, 2.20% in April, 2.38% in March, 2.74% in February, and 2.50% in January. CPI 244.786 in July down from CPI 244.955 in June Monthly Inflation for July -0.07%, June 0.09%, May 0.09%, April was 0.30%, March was 0.08%, February was 0.31% and 0.58% in January. Next release September 14th The reason the CPI went down but inflation went up is because July 2016 monthly inflation was -0.16% and this July was less negative. So CPI goes down for the month but not as much as last year so Annual … [Read more...]
Inflation 1.63% in June
The U.S. Bureau of Labor Statistics released the Annual Inflation Rate data for the year ending in June on July 14th 2017. Annual inflation was 1.63% in June - down from 1.87% in May, 2.20% in April, 2.38% in March, 2.74% in February, and 2.50% in January. June CPI-U 244.955-- May CPI-U 244.733 Monthly Inflation for June 0.09%, May 0.09%, April was 0.30%, March was 0.08%, February was 0.31% and 0.58% in January. Next release August 11th Annual Inflation Chart Annual inflation for the 12 months ending in June 2017 was 1.63% down from 1.87% in May, 2.20% in April, 2.38% in March, 2.74% in February and 2.50% in January. The annual cyclical low was 0.84% in July 2016. The … [Read more...]
Inflation Down in May But Real Estate Booming (or is it?)
Annual inflation for the 12 months ending in May 2017 was 1.87%. Inflation has steadily moved lower month by month from its peak of 2.74% in February. First falling to 2.38% in March, then down to 2.20% in April, and finally 1.87% in May. Although Inflation has fallen it is still slightly above its 12 month moving average (Red Line) indicating that the short-term trend is still up, although the gap is closing, a cross below the moving average would indicate that the short term trend has switched to "down". Since 2008, there has been a battle between inflation and deflation with the FED fighting against deflation. In March, the FED has switched sides and is raising interest rates. … [Read more...]
Effects of Inflation on Businesses
When we think of inflation we usually think of how it affects us as consumers. But the effects of inflation are wide ranging, including not only individuals but also businesses and even countries. Consumers and businesses alike have to deal with the impact of inflation, both good and bad. Here are some ways in which inflation affects businesses: 1. Consumer Purchasing This is the most obvious impact to businesses. Rapidly rising prices will cause consumers to (as Samuel Goldwyn famously said) "stay away in droves". There are ways for businesses to plan for inflation to reduce the chances of revenue loss. Gradually increasing prices will prevent a sudden price hike, and if your … [Read more...]
Inflation Rate Falls for April
The U.S. Bureau of Labor Statistics (BLS) released the monthly and annual Inflation numbers for April 2017. Annual inflation was 2.20% down from 2.38% in March, 2.74% in February, and 2.50% in January but above the 2.07% in December. Consumer Price Index (CPI-U) 244.524 up from 243.801 in March Monthly Inflation for April was 0.30% very close to February's 0.31% and similar to the average between March's 0.08% and January's 0.58%. Next release June 14th With Inflation falling almost 2/10ths of a percent and unemployment down one-tenth of a percent the Misery Index is down 3/10ths of a percent. The misery index helps … [Read more...]
Should Investors Diversify Using Inflation-Protected Annuities?
The drop in the unemployment rate, moderate salary growth, and the increase in the federal funds rate have become the key markers of the economy’s continued recovery. While these are positive indicators, a strengthening economy can also trigger a rise in prices, resulting in higher inflation. Since July 2016, CNBC states inflation in the United States has climbed steadily after hitting 0.8%. As energy prices rebound after a massive drop for much of 2016, the inflation rate is likely to remain close to its current levels in the coming months. Rising inflation can prove problematic for investors as investment returns are unable to keep pace with rising prices. More so for retirees, who … [Read more...]
