Inflation has been the story of 2022. The Federal Reserve increased interest rates at an incredible fast rate. It’s hard to believe that less than a year ago homebuyers could get a sub-3% mortgage rate. 30-year loans would now expect a rate of 6-7%. This is just one part of the story, but it’s a huge slice of the economic pie and it seems to be working.
Cracks are showing in the economy with more news of layoffs every week and evidence of slowing growth amongst some of the world’s largest companies. A weakening consumer doesn’t sound like good news, but it plays a huge role in tamping down inflation. The Producer Price Index (PPI) rose only 0.2% in October versus an expected 0.4%. This was a major driver in the S&P 500 jumping 5.5% on November 10th. It has caused many to wonder if we’ve seen the worst of the stock market sell-off.
The stock market is always forward-looking and generally does worse before a recession hits. If the inflation data indeed continues to improve, the stock market will likely respond positively since this should slow the need for higher rates. Time will tell, but big up days like November 10th just highlight the benefits of staying invested and not trying to time the market.
New I-Bonds Rate
The new rate for I-bonds was released in November. The fixed rate was set at 0.4% for bonds purchased from November 2022 to April 2023 with a composite rate of 6.89%. This rate will continue to fluctuate based on inflation rates.
Cryptocurrency Deep Dive and The Power of Brands
Looking for a overview of the world of crypto? Is it the future? Is it a fad? Crypto is many things, some of which are bizarre, confusing, and just bit wacky. Check out this Bloomberg article to gain a deeper understanding of what’s going on with crypto.
The power of a strong brand often leads to huge success over the long-term for businesses. Check out this visual view of the world’s largest brands.