The stock market awaits the CPI this morning. The market is slightly down but it is anybody’s guess on what will happen at 8:30 EST. The market is down and is usually right but not always. It anticipates but is often wrong. It is like a sports bookie; they go with the odds but if you are focused and educated you can win. The market is not like sports betting. It just requires discipline and education. We stay focused on the long-term and aren’t day-traders following the latest fad.
The stock market is currently stagnant as it anticipates the release of inflation data today and tomorrow. The CPI will be released today and the PPI on Thursday, but there are no clear catalysts for the market to move in any particular direction. Some people believe that the numbers will be more negative than anticipated, but recent months have shown that there have been surprises in the data.
The Federal Reserve’s interest rate hikes are expected to have an impact, although their effects may not be felt immediately. Most people do not fully comprehend the impact of high rates, but they will eventually feel it. As credit card debt rises and interest rates increase, consumers are likely to reduce their spending and take fewer vacations. People on adjustable-rate mortgages will also be affected, but it may take several months for them to feel the full impact. This will have an impact on employers, resulting in more layoffs and slower hiring in the future.
As a result, it is advisable to hold onto cash in treasuries (paying 5.26%) or money market funds and wait for the right investment opportunity. Just sit on the money until you see an unbelievable buying opportunity. Discipline and education! There are many inexpensive stocks available, a further discount may be possible soon. Long-term investment should be the focus, and investors should be patient with their holdings. It may take three to five years to achieve a decent return. Dividend stocks could be a good investment option right now. By investing in dividend stocks, investors can receive payments while they wait for their investment to grow. Check out Fiscal Investor for some dividend stock ideas.
Today, the CPI is scheduled to be released at 8:30 AM, and market volatility may ensue. Keep an eye out for updates.
There will be another update today but it doesn’t change the message. Say focused on long-term investing.