Broker Check

The Weekly Update 12/22/2023

| December 22, 2023

The Weekly Update 12/22/2023

In every 2023 issue of The Seven Signs of a Changing Economy™, I have written under Sign #7, Inflation/Deflation and GDP, how inflation was dropping like a rock. 

Research firm LSEG Datastream and Yardeni Research just created this 50-year graphic of what I have been writing about all year.

The Consumer Price Index (CPI) is meant to measure inflation at the household level. 

2022 CPI (Peaked June of 2022 at +9.10%)

July                 8.50%

August            8.30%

September     8.20%

October          7.70%

November      7.30%

December      6.50%

2023 CPI

January          6.40%

February        6.00%

March             5.00%

April                4.90%

May                 4.20%

June               3.00%

July                 3.20%

August            3.70%

September     3.70%

October          3.20%

November      3.10%

 

It is important to note that every month of 2023 that the CPI comes in lower, the same month of the prior year drops off the year over year calculations.

This is a simple mathematical fact and is easy for all to see, except maybe our Federal Reserve Board of Governors, who have been dead wrong for two years. 

However, they are starting to listen, and I still strongly believe the interest rates will not be going up again and will be dropping in 2024.   This is good for assets that represent ownership in Corporate America. 

These are just another fact based and source cited data points that will keep The WSG Team continuing to add lower risk, lower volatility, and best-of-class investments to our client family’s asset allocations.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.