CPI, PPI, PCE - What Are Inflation Indicators And How Do They Factor Into Investing?
CPI, PPI, PCE - What Are Inflation Indicators and How Do They Factor Into Investing?
May 15 08:00
ReplayDear mooers, Sarge is back again to our live-streaming event. This time, we will talk about economic indicators – Consumer Price Index, Producer Price Index and others – along with a few other fundamental measures Wall Street uses to assess the macroeconomic situation.
Many investors are familiar with inflation indicators, but did you know how the Fed attempt to regulate inflation? Or how the president and Congress address – or do not address – inflation through so-called "fiscal policy"? Sarge will give us a rundown of these and his insights regarding the market reaction.
You are welcome to ask any questions related to this topic. Stephen will address your inquiries during the live broadcast. Submit a complete question under this post, and you'll receive 100 Moo points, plus another 1,000 if we use your question on air.
[Stephen's Full Bio]
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on moomoo community for a mix of fundamentals, technical analysis, economic commentary and trading ideas.
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen "Sarge" Guilfoyle on moomoo community for a mix of fundamentals, technical analysis, economic commentary and trading ideas.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : Hello Sarge, all this various jargons can be confusing for some of us so is there any way u can explain it to us in layman's terms and how it affects macroeconomics?
erin39 : Hi. Can you explain the relationship between these economic indicators and help can they help us make decisions during investments. Thank you.
doctorpot1 : Are we perhaps overly fixated on the Federal Reserve's rate adjustments by closely monitoring CPI and PPI, thereby potentially overlooking broader macroeconomic factors that could influence market dynamics?
102362254 : Question 1 - What role do inflation indicators play in shaping monetary policy decisions by the Federal Reserve?
Question 2 - Are there any alternative measures or indicators that investors should consider alongside CPI, PPI, and PCE to gauge inflationary pressures more comprehensively?
Question 3 - In what ways can investors hedge against inflation risks in their portfolios?
Wonder : Interest rate decisions by FED are very much data driven. In light of contrasting data (eg high CPI keep rates high vs high unemployment keep rates low) and/or sticky inflation, how can investors navigate the uncertainty?
How can long term investors capture opportunities amid the adjustments?
Cashcauterize : Bla Bla Bla! How do we deal with crooks and do you have an indicator for that one!
ZnWC : Thanks for the previous sharing
Here are my questions:
1. Based on the current inflation indicators, do you think the Fed will cut the interest rate by the end of this year? Why?
2. Do you think the recent rise in BTC are related to the inflation indicators? If so, what is the implication it has on the stock market?
3. What's the risk that US economy will slip into a stagflation - no growth with high inflation? Should we be worried?
BelleWeather : Question 1)
I’ve read the markets react poorly to rate cuts, but in this instance, if the economy is (arguably,) still strong when rates are lowered, can we expect the markets to respond favorably?
Question 2)
Some industries are very rate sensitive or have been suppressed by higher rates, would it make sense to enter positions in advance of cuts, for example in REITs that have been beaten down or biotechs and other small cap growth companies?
Question 3)
As always, how do these data impact options strategies? Is there any particular consideration, especially for LEAPS and long dated options?
Thank you!
ilovesoya : Does the inflation data cause volatility in the stock market ?
74151791 102362254: $NVIDIA (NVDA.US)$
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