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Inflation Reaction - Reasons to be optimistic.

It's been impossible not to notice inflation this year.


June's CPI print came out this morning at 9.1 %, the highest on record in my lifetime. (Since 1981)


If you are worried about lasting high prices - here are 3 reasons to maintain optimism for the future:


๐Ÿญ.) ๐— ๐˜‚๐—ฐ๐—ต ๐—ผ๐—ณ ๐˜๐—ต๐—ฒ ๐˜„๐—ผ๐—ฟ๐˜€๐˜ ๐—ถ๐—ป๐—ณ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป "๐˜€๐—ต๐—ผ๐—ฐ๐—ธ" ๐—ถ๐˜€ ๐—ฏ๐—ฒ๐—ต๐—ถ๐—ป๐—ฑ ๐˜‚๐˜€.


The U.S. stock market has pulled back ~20% and entered a bear market on the fears of inflation and economic growth.


The stock market is a ๐˜ญ๐˜ฆ๐˜ข๐˜ฅ๐˜ช๐˜ฏ๐˜จ indicator of the economy, and much of the selling the last 6 months has been due to the fear of the current inflationary environment and slowing economic growth.


I am in the camp that the worst of the selling in the stock market is behind us- time will tell if I am correct.


๐Ÿฎ.) ๐—–๐—ผ๐—ฟ๐—ฒ ๐—ถ๐—ป๐—ณ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป ๐—ฐ๐—ฎ๐—บ๐—ฒ ๐—ถ๐—ป ๐—ฎ๐˜ 5.9%, ๐˜€๐—ต๐—ผ๐˜„๐—ถ๐—ป๐—ด ๐˜€๐—ถ๐—ด๐—ป๐˜€ ๐—ผ๐—ณ ๐—ผ๐—ฝ๐˜๐—ถ๐—บ๐—ถ๐˜€๐—บ.


Inflation is broken into 2 parts- Headline & Core Inflation.


Headline inflation is primarily used in comparing purchasing power year over year, however it includes food & energy prices.


Core inflation ๐˜ฐ๐˜ฎ๐˜ช๐˜ต๐˜ด food and energy prices, which are highly volatile in price.


Core inflation is the preferred metric in predicting ๐˜ง๐˜ถ๐˜ต๐˜ถ๐˜ณ๐˜ฆ inflation rates.


This number coming down is a good sign.


๐Ÿฏ.) ๐—˜๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐—ถ๐—ป๐—ณ๐—น๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐—ฎ๐—ฟ๐˜† ๐—ฝ๐—ฒ๐—ฟ๐—ถ๐—ผ๐—ฑ ๐—ถ๐—ป ๐—ต๐—ถ๐˜€๐˜๐—ผ๐—ฟ๐˜† ๐—ฒ๐˜ƒ๐—ฒ๐—ป๐˜๐˜‚๐—ฎ๐—น๐—น๐˜† ๐—ฒ๐—ป๐—ฑ๐˜€. (๐—˜๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐˜€๐˜๐—ผ๐—ฟ๐—บ ๐—ฟ๐˜‚๐—ป๐˜€ ๐—ผ๐˜‚๐˜ ๐—ผ๐—ณ ๐—ฟ๐—ฎ๐—ถ๐—ป)


It is very hard to predict the future.


The greatest economists, investors, and writers alike have never been able to fully pin a market bottom or price top perfectly.


The only constant in all of our historical inflationary data is that it does eventually stabilize.


I can't guarantee if it's next month, next quarter, or next year-


But I can guarantee you that this too shall pass.


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