I have been worrying about inflation, particularly wage inflation, as our economy reopens. Inflation can crush the valuations of growth stocks and other “long duration” assets. However, the spreading of COVID’s delta variant and recent indications of a quicker economic slowdown.
Inflation readings were scary in April and May with the Consumer Price Index (CPI) up a respective 4.2% and 5.0%. Why should you care? If you think that inflation is transitory then you should not worry. That is our central bank’s — the Federal Reserve Board’s — official stance.
As I listen to and read about the fears of above-average inflation and rising interest rates I also hear and read about a labor shortage and a shortage of finished product inventory.
Portfolio manager Paul Meeks, CFA, CAIA weighs in on Boeing stock and why Boeing’s wounds are self inflicted. Read here for full details.
In April 1980, which was at the end of President Jimmy Carter’s single (no surprise) term in office, inflation in the US peaked at 14.6%. Inflation is commonly measured by the Consumer Price Index (CPI). Think of it as the price of a basket of goods that most of us buy frequently. About a year and a half later, specifically in September 1981, President Ronald Reagan was still trying to tame inflation; and interest rates were sky high in response.
Cryptocurrency continues to grow in popularity in the investment world. As a result, investors are interested, yet hesitant, when approaching the currency due to its volatility and the lack of knowledge or understanding of this modern currency.
John Thur, CFA at Independent Solutions Wealth Management put together his commentary on the stock market update for Q1. Read here!
Paul Meeks, CFA, CAIA, is on CNBC’s Power Lunch to talk about recent tax hikes and how it can hurt big tech. Watch here for the details!
A bearish call by a sell-side — I’m on the buy-side — analyst has hit semis stocks. He (in this case) didn’t quibble with the near-term positive outlook for the industry — who could with commodity chips in record short supply?
Paul Meeks, CFA, explains in his 2021 first quarter financial commentary on tech and some reasons why it’s not winning. Read the commentary here!