Unveiling the US Economy, The Federal Reserve’s last yearly meeting gave us a better understanding of the state of the US economy, and what we can expect in 2021.
Topics
Investing in a Post-COVID
Investing in Uncertain Times
Bucking Up for a Bumpy Ride
Investing in a Post-COVID
The Consumer Price Index (CPI) was one key indicator that showed an overall increase in prices over 2020,
while economic reports revealed that jobless claims had decreased since March.
We all know that the Consumer Price Index
(CPI) is an important indicator of economic health.
It measures changes in prices for a variety of goods
and services over time and can provide insight into inflationary trends.
These indicators demonstrate how far the US economy has come
since last year when it was hit hard by COVID-19 pandemic restrictions.
With many businesses reopening and more people returning to work,
there is hope for a successful recovery this year as long as new cases remain low,
and vaccinations continue to be administered across all states.
Now is an ideal time to start researching potential investments with confidence
knowing that consumer spending will likely rise due to increased demand
from consumers who have been saving during lockdowns
or are receiving government stimulus checks. Additionally,
companies whose stocks have taken hits due to pandemic-related losses
may present interesting investment options if their prospects look promising
once normal operations resume later in 2023 or beyond.
It’s important not just for investors but also citizens at large to pay attention closely
how well jobless claims are doing moving forward;
continued decreases would suggest steady improvements
which could mean good news both economically speaking
as well as those seeking employment after being laid off during 2020’s tumultuous times.
All considered, these latest numbers from Fed’s meeting
provide some optimism about our collective future heading into 2021!
we are always looking for potential growth opportunities in the markets.
With that said, it’s important to pay close attention to inflation rates
and how they may affect our investments.
Investing in Uncertain Times
The latest report from the Bureau of Labour Statistics shows
that on a year-over-year basis prices climbed 7.3% in November,
easing back from October’s cooler-than-expected 7.7% growth rate
which was the lowest reading since January and the fifth month of slowing annual growth
since June’s 9.1% surge (which marked the highest inflation rate in almost 41 years).
It’s been an overall decrease in year-over-year prices compared with last month
it is still higher than what we have seen historically speaking over recent decades;
so, while there could be some short-term impacts due to this data
long term investment strategies should remain unchanged
as inflation remains relatively high when compared to historic trends.
Overall, these figures indicate a slower pace of price increases than expected
but not necessarily one which will cause major disruption or concern among investors
who choose their investments carefully and understand market dynamics well enough
before making decisions based on them.
The latest forecast from the Bureau of Labour Statistics shows that
the core CPI is expected to rise 6.1% in November,
down slightly from October’s cooler-than-expected reading of 6.3%.
This marks two consecutive months where growth has cooled compared
to September’s record-high increase of 6.6%, which was its highest level since August 1982!
Bucking Up for a Bumpy Ride
While this news might seem concerning at first glance,
there are some positives here for investors as well:
slower growth indicates a more stable economy overall with less risk associated with it
something all savvy investors should be looking out for! Additionally,
lower inflation rates mean better purchasing power when it comes to investing your money;
you will get more bang for your buck so to speak if prices remain low or even decrease further still!
Moreover, then while slowing CPI growth may not appear encouraging on paper initially,
It looks like the inflation Grinch is planning to stick around for a while.
With economic data continuing to show signs of slowing growth,
investors should buckle up and prepare for a bumpy ride ahead.
The Producer Price Index report showed that wholesale prices are still growing at an alarming rate,
despite recent efforts by the Federal Reserve to slow inflationary pressures through interest rate hikes
and quantitative tightening measures.
This has caused stocks to sell off significantly in recent days
as investors become increasingly concerned about rising costs across all sectors of the economy.
Thursday’s jobless claims and retail sales reports will be especially telling in terms
of how much further we could see prices rise over the next few months if consumer spending continues its current trajectory.
It’s important for investors not only to keep a close eye on these numbers
but also adjust their portfolios accordingly so they can best navigate this uncertain environment moving forward into 2020
because it looks like there won’t be any sign of relief from our old friend Mr Grinch anytime soon!