Data Suggests the Rate of Inflation will slow down. So, why is everyone telling you otherwise?
Blake Morrow sits down with Eric Basmajian to talk with him about the current inflationary environment and if it is easing or not. Also, how will this influence the FOMC this month and how that could also affect asset prices.
0:00 – Intro
1:00 – Inflation – Smooth 6 month annualized growth rate
1:35 – CPI (Consumer Price Index) is at 6.5%
1:50 – Growth Rate of Industrialized Commodity Price Inflation
2:45 – Inflation continues to rise. The reason is become of Supply Chains. Peak Supply Chain disruption occurred about 2 months ago.
3:53 – Headline CPI over the Trimmed Basket is the largest spread we have seen over the last 30 years. This indicates a very intense concentration of inflation, specifically in the supply chain. Data is suggesting inflation is starting to easy.
7:00 – When growth rate of the economy is coming down that is when you get the correction in all of the risk assets.
7:40 – Technology Stocks are up 20% over the past 6 months. But cyclical sectors, such as the Russell 2000, have lagged.
9:27 – Will the Federal Reserve once again act at the wrong time?