Up next is the PPI (Producer Price Index), which is scheduled to be released this morning at 8:30 EST. The previous CPI (Consumer Price Index)came in lower than expected, indicating a slowdown in inflation. The PPI represents the costs incurred by companies in producing goods. Theoretically, if production costs increase, consumers may eventually have to pay more for those goods.
Currently, the market is relatively flat, but Disney’s (DIS) recent disappointing performance has heightened uncertainty. Coupled with the slowing economy and ongoing debt limit issues in Washington, there are concerns about a potential government default. The stock market typically reacts negatively to uncertainty, so the focus now turns to the PPI release as the next influential factor. Stay tuned for further updates today.
In line with our previous post Inflation Today? and Investing for the Long-Term, it is advisable to hold onto cash in treasuries (yielding 5.26% assuming government payment) or money market funds, patiently awaiting the right investment opportunity. It is recommended to remain on the sidelines until you spot an exceptionally favorable buying opportunity. Discipline and education are crucial. There are numerous affordable stocks available, so thorough research is essential. Emphasizing a long-term investment approach, investors should exercise patience with their holdings.
Stay tuned for more updates later today, and maintain a focus on the long-term, as it is often a winning strategy.
Setting Long-Term Goals