Does The CPI (Consumer Price Index) Report Affect The Stock Market | News or Noise
On Wednesday, August 10th, the government released its consumer price index, also known as CPI, which raises the question, does this affect the stock market and your portfolio? CPI rose 8.5% in July 2021, which was below expectations, mostly on slumping energy prices.
Excluding food and energy prices, core CPI rose 5.9% annually and 0.3% monthly, compared with estimates of 6.1% and 0.5%. The report was good news for workers, who saw a 0.5% monthly increase in real wages.
00:00 Introduction
00:40 CPI
02:00 M2 versus Inflation
02:41 Contact Us!
Does this news affect your investments? Is it news that you can use to decide when and how to invest? Is this topic Newsworthy and should you be paying attention?
As you know, our constant advice for investors is to “tune out the noise.” But sometimes it is hard to know what’s noise and what’s not! That’s what this series is going to be about.
Our goal here is to approach these stories and each topic from an independent, investor-first, standpoint, divorce ourselves from personal feelings, emotional bias, or political opinion, and briefly analyze what we believe each story means for long-term investors.
These are going to be quick, casual, opinion pieces, and while we will use data to support our view, we will most likely be wrong in our interpretations, at least some of the time. However, we are looking to practice what we preach, and to help investors to rationally and critically analyze emotion-laden stories.
So with that said…
News or Noise?
#financialnews #factorfiction #mythsdebunked
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About Chris Perras, CFA®, CLU®, ChFC®, Chief Investment Officer
As CIO, Chris is the lead investment strategist and director of research at Oak Harvest Financial Group. Chris develops the firm's core market outlook, putting his decades of experience and expertise to work for our clients. He hosts Oak Harvest's podcast, "Stock Talk," available on the website with new episodes each week.
He completed his undergraduate studies at Georgia Tech, and went on to obtain an MBA from the Harvard Business School. Driven by a desire to maximize his knowledge and skill set, he acquired a plethora of financial planning and investment management qualifications, becoming a Chartered Life Underwriter (CLU®), a Chartered Financial Consultant (ChFC®), and a Chartered Financial Analyst (CFA®).
Important disclosures:
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