• Inflation figures for September were announced and prices rose 0.4% for the month
• This reduced the annual rate slightly to 8.2% from 8.3% in August
• Prices are expected to continue to rise, but this means that savings accounts are already starting to pay interest again
• Top weekly and monthly trades
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The latest inflation numbers were released on Friday and it is clear that the Fed’s hawkish stance on raising interest rates has not yet been enough to bring rates down. The CPI rose 0.4% for the month of September, bringing the annual rate of inflation down (barely) to 8.2% from 8.3% last month.
That’s less than the 9.1% highs we saw in June, but it’s dropping at an icy pace.
It is exacerbated by the fact that wages are not rising at the same rate. Despite a strong labor market with surprisingly low levels of unemployment, real wages are down -3% compared to this time last year. The number was released in a separate statement by the US Bureau of Labor Statistics this week.
Not only has average income decreased in real terms over the past year, but average hours worked have also decreased. This means that the average real weekly earnings are down 3.8% over the past 12 months.
However, it is worth emphasizing that the rate of inflation is heading in the right direction. This is the third consecutive month that we have seen a decline in the annual rate of inflation and this trend can be expected to continue given the Fed’s interest rate plan.
The stock market was everywhere away from the background of the news. The S&P 500 initially fell more than 2%, before making a full reversal to end the day 2.6% higher.
As a result of all this, further rate hikes by the Fed are almost guaranteed. The next meeting in early November is expected to result in a base rate increase of at least 0.75 percentage points, with a full percentage point increase not in question.
This remains a challenge for areas such as the housing sector, where the average 30-year mortgage rate is 7.08%. In July of last year, it was possible to get the same mortgage at an average rate of 2.78%. ouch.
Again, not all news is bad. For the first time in a long time, savers are finding that savings accounts actually pay a certain level of interest. Now due to higher inflation, these still provide negative real returns. But still.
We're even seeing new players get into the savings game and they're not just banks. Apple has announced plans to let iPhone users deposit money and credit card rewards into a new interest-bearing account. As with their other financial products, the Apple account will be powered by their partnership with Goldman Sachs.
So far we don't have any details on the interest rate to be paid, but it's another example of Apple's expansion into financial services. Apple Pay is ubiquitous, they're offering their own credit cards, and they're set to launch point-of-sale functionality for iPhones and their "Buy Now, Pay Later" program in the coming months.
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It is unlikely that we will stop talking about inflation anytime soon as it does not look like it will return to normal anytime soon. This means there is still plenty of time to consider its impact on your portfolio and take steps to protect against it.
Gold and other precious metals date back thousands of years with their use as a store of wealth, currency, and a hedge against rising prices. Since the time of the Incas and the ancient Egyptians, gold has been a commodity that was considered universally valuable. This is a track record.
Despite iPhones, electric cars, social media platforms, and reality TV shows, we still value gold today just as much as we did in the time of ancient Rome.
So, while it may not be the only investment category anymore, it is still a major player and an alternative asset that many investors should consider. Not only gold is worth seeing, but also other precious metals like silver, platinum and palladium.
But investing in such an alternative asset class can be daunting. That's why we created the Precious Metals Group. We use artificial intelligence to predict the expected risk-adjusted returns over the next week for gold, silver, platinum and palladium, then balance the pool across these metals by investing in related commodity ETFs.
It's a great way to get exposure to gold and other precious metals, without having to install a fireproof safe in your basement.
best business ideas
Here are some of the best ideas our AI systems recommend for the next week and month.
QuidelOrtho Corp (QDEL) - The Diagnostic Healthcare Company which is very likely to have the worst name in its sector is one of our companies Next week's highest purchases With an A rating in value for quality, technologies and growth. Revenue is up 50.4% in the 12 months through July.
Aeglea Biotherapeutics (AGLE) - Biotechnology company is one of our companies Best shorts for next week With our AI rated C for technology, low momentum volatility, and quality value. Earnings per share are down -14.34% over the past 12 months.
Graftech International (EAF) - Industrial plant is one of our products Top purchases for the next month Rated an A in our Quality Value Factor. Gross profit increased 48.2% in the 12 months to the end of June.
Freshbeat (FRPT) - Pet food company is one of our companies Top shorts for next month By rating our AI a grade of F in quality value and D in low momentum volatility. Earnings per share are down -54.76% over the past 12 months.
Our artificial intelligence Highest ETF Trading for the Next Month It is investing in Argentine stocks, North American natural resources and energy stocks, and shorting the bond market. top buys It is the Global X MSCI Argentina ETF, the iShares North American Natural Resources ETF, and the iShares US Energy ETF. top short It is the iShares Floating Rate Bond ETF and the Vanguard Short-Term Bond ETF.
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