The latest inflation and CPI data have come in and I really believe the stock market is reacting to them the wrong way. There are a few BIG problems with this data that I don’t see the mainstream media talking about. In this episode, I lay out the difference between PCE (which the Federal Reserve tracks) and CPI (the consumer price index we all measure inflation by). Knowing this has a big effect on which stocks are the best stocks to buy now.
📝 Resources & References 📝
Is inflation 8.6% or 6.5%? Yes:
Consumers expect inflation to slow down, a big win for the Fed:
Inflation Slows as Economy Cools, Offering a Reprieve:
Why Gas Prices Are So High:
A Reconciliation between the Consumer Price Index and the Personal Consumption Expenditures Price Index:
💬 Join The Conversation & Stay Up to Date 💬
Follow on FinTwit ▶
5000+ member Discord ▶
Quick Tips & Videos ▶
Short-form Insights ▶
📚 Useful Resources 📚
My full resource library ▶ (work in progress)
ARK Invest Big Ideas 2022 Report ▶
ARK Invest Innovation ETF (ARKK) ▶
ARK Invest Genomic Revolution ETF (ARKG) ▶
ARK Invest Autonomous Technology & Robotics ETF (ARKQ) ▶
ARK Invest Next Generation Internet ETF (ARKW) ▶
ARK Invest Fintech Innovation ETF (ARKF) ▶
ARK Invest Space Exploration ETF (ARKX) ▶
Roundhill Ball Metaverse ETF (METV) ▶
Ball Metaverse Research & Index ▶
📜 Disclosures 📜
All content on this channel is for informational purposes only and should not be construed as professional financial advice or recommendation to buy or sell any securities. Trading stocks, ETFs, other securities, and/or cryptocurrencies poses a considerable risk of loss. Neither host or guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Should you need such advice, consult a licensed financial or tax advisor. When you make purchases through links in this video description, the author may earn a commission.
🙏 Thanks for watching!…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Which stocks are you watching? Come join my 4000+ member Discord community and let me know! https://discord.gg/9UHrHex4JX
Government and politicians hiding something never tell the truth
CNBC? sounds like evangelical preaching
Of course it’s not right they changed how they calculated it in the 70s or 80s and made easier for themselves not the average person. Now many people my age around 35-40 don’t realize it because they can’t be bothered to look things up. Which isn’t entirely their problem but they do have some blame
ℹ️
We're at the point where we simply can't handle any more inflation of any kind. Wages haven't increased for 99% of people in multiple decades but we've been getting hit with 3% inflation every single year. It's like being stabbed with a needle thousands of times; each one doesn't do much damage but overall your seriously hurt. More recent inflation figures at 10-15% if we're being realistic are a full on stab with a knife and people can't handle it! We either need wages to increase by something like 25% (companies need to be forced to return some of their profits back to staff because they're making more than ever before and it's only management benefiting) OR we need deflation for a while to bring prices back to a reasonable level. People in a lot of western countries simply can't afford to live anymore. Rent takes at least 50% of your income if you live near any major city, food another 20%, transport another 15%, other basic LIVING expenses like cleaning products and replacing clothing 15% then there's nothing left! People aren't saving for their retirement because they don't have any spare cash to use. We need politicians to actually do something instead of pretending like it's going to go away!
Very interesting info Alex
Thanks for the info. My question is: If PCE is what the fed based their next decision on. If the PCE comes in higher on the next release date which is coming up soon, would that be the reason fed might hike rate to .75 instead of .5 like everyone is expecting?
Manipulation lies lies and lies
By the time inflation falls back to 2%, the market will have long passed all time highs
God bless this man.
inflation peak is behind us now. If you look that 5y breakeven inflation chart, it is going downtrend. so I believe that, that is why market going up today
Investing in crypto now should be in every wise individuals list, in some months time you'll be ecstatic with the decision you made today.
It is soooooo hard to understand what the CNBC guy is talking about. But everything becomes so easy to understand and crystal clear when you explain, Alex. I think you are the one who should be on television explaining economic data.
Oil related products have always been the biggest driver of inflation. You can't say this report is wrong but then when inflation peaked at 9.1% thanks to fuel, you say the world is coming to an end.
The point is that inflation is slowing down, which is a good sign. It's still not the desired 2-3% rate, but at least it's slowing down.
theres football and there is also futball
I am looking forward to the stock market hitting an all time just like September 3 1929. just pump like there is no tomorrow.
Inflation is a disaster. This CPI report is a disaster. The FED is going to have to pull all their punches to stop the housing market. The sad thing is other markets are getting destroyed. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 17% and being cautious. Still better deal than letting it sit in savings or checking earning near 0-1% interest.
you need to face the reality, Greg Manarino resumes it as the FED owning a trade desk at the exchanges. The Stocks are artificially sustained. like a brain dead being kept alive with oxygen.
Great analysis and video. CNBC's Santelli is like that kid who never found or used his indoor voice. He's based in Chicago but acts like he has to shout to get the CNBC studios in NY/NJ to hear him.
Markets are forward looking, they predict prices will drop in 12+ months not necessarily today. Some examples of price drops are housing has already rolled over, crude oil, commodities and shipping costs have already fallen. Coupled with earnings were better than expected
thanks for the video. provided me with alot of clarity
Hiding the reality of the impoverishment of the average American . The DS is making people feel like they are alone in their misery.
6:20 wait, wait. You said earlier in the video that it's the PCE the fed is trying to keep at 2%, not the CPI…which is it?
July was the right time to add to your most beaten up stocks in order to start getting rid of them now. I really don't understand how to recover from the past 8-12-18 months losses otherwise. That's what I did with some of my positions; I can't tell you I did it without having big doubts but it allowed me to turn some of my bigger losers in gainers.
Anyone who shops knows they're not reporting the actual inflation rate. It's 12 bucks for a pound of ground sirloin. It was 8 bucks not too long ago. That's a lot more than 2 or 3 percent.
"Transient" is the word. As in "homeless"
There is something wrong with the market. NVTA made 278% in ONE DAY and today it has already lost 8% (Frankfurt stock exchange where I hold my position). The earnings were OKish but not mind-blowing. My entire portfolio surged by 8% yesterday. Since I initiated a position in MELI end of May, the returns are 53% (not normal!!!!). The bad news is, that someone on Wall Street is totally overdoing it. The good news is, that I am less and less worried about my losses. Sitting on cash like a chicken on eggs because all that euphoria is gonna come crashing down and there will be tears.
Alex, once again another A+ presentation- containing your hallmark style of didactic timely analysis. Thank you for encouraging your viewership to see "the devil in the details" and to resist 'the hype of the herding process'. Cheers from Toronto!
Good stuff. Shared on Twitter
This guy has failed miserably last year , beware of that before listening to anything
Lol, so we doomed?
Another great video, thank you.
finally a good video showing true facts Meet Kevin just fomoing people into the market! I live in Canada Toronto NOTING has gone down in price everythign is up or higher for food. Gas is cheaper and mortgage rates are higher
Europe and China reported terrible numbers hours before. Anything over 5% is terrible for the middle and lower class, and 8.5% is atrocious. I'm confident American finance media is just dumb, or they are trying to prop up a certain political group.
I just discovered you accidentally. Your video was great, actually very impressive. You have a future in this. Keep it up, a lot of people will benefit from your insightful research.
Great vid Alex. I'm glad I'm not the only one who thought CNBS reporting of the numbers was akin to a halftime show. We are NOT OUT OF THE WOODS so I am keeping some powder dry as well.
I cashed out with the help of today’s pump in the green. Will continue to look for interesting plays but will be more careful in my trading account
I agree totally!