The Inflation Head Fake?
In this week’s market update, we are going to review the recent inflation report, what we think it’s saying about price pressure today, and more importantly, what it may suggest about the path of inflation tomorrow. Additionally, we will break down what we believe caused the selling pressure earlier in the week and why stocks moved higher after the inflation report came out, despite a fresh inflationary surge. We wrap things up with a quick review of how we are looking to position assets after the most recent inflation report.
Key Takeaways
- The June inflation report appears to mark a possible peak in price pressures
- Commodity prices continue to collapse, which should help offset inflation
- Growth stocks historically outperform value during times of slowing growth and disinflation
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