Higher-Than-Expected Inflation Reading Sends Markets Spiraling \u2013 <\/strong>For the month of August, consumer prices (CPI) rose 8.3% year-over-year, which was a slight decline from July\u2019s 8.5% pace. The problem was that month-over-month, prices rose 0.1% from July even as prices eased for gas, airfares, and items like rental cars \u2013 which had driven significant inflation earlier in the year. That meant that core prices \u2013 which exclude food and energy and give a broader picture of prices for consumer goods and services \u2013 rose far more than expected, signaling that inflationary pressures could be more broad-based than anticipated. Indeed, core prices rose 0.6% from August to July, which all but confirms that the Federal Reserve will continue pursuing its hawkish path with interest rates. According to Moody\u2019s Analytics, the average household is now spending about $460 more each month to buy the same basket of goods and services as compared to 2021 prices, marking a significant uptick. Incomes have risen over the same period, helping to offset some of the higher costs, but wages have not gone up as quickly as inflation. The market responded with a sharp selloff, with every sector in the S&P 500 falling and the index plunging by -4.3% in a single day of trading \u2013 the biggest selloff since the depths of the Covid-19 bear market in early 2020. It appears the market had been hoping that the inflation print would confirm a downtrend, which would have taken the pressure off the Fed to raise rates so aggressively. The readout did the opposite, however, all but assured at least a 75-basis point increase at the Fed\u2019s September 20-21 meeting.1<\/sup><\/p>\n\n\n\n ___________________________________________________________________________<\/p>\n\n\n\n 8 of the Biggest Financial Mistakes You Should Avoid<\/u><\/strong> ___________________________________________________________________________<\/p>\n\n\n\n Some Slightly Better Inflation News \u2013 <\/strong>Consumer prices remained sticky in the month of August, but more hopeful news could be found in the producer-price index (PPI), which measures what suppliers charge businesses for the delivery of goods and services. Generally speaking, changes to the PPI will show up in the CPI numbers with a lag, as businesses can adjust pricing over time as input costs fall. PPI in August fell 0.1% from July, which followed a 0.4% decline from June to July (see chart below). The year-over-year decline in August was also notably significant compared to July, with the PPI rising 8.7% in August compared to the 9.8% increase posted in July. Both the CPI and PPI data are fickle from month to month, so focusing on one or even a few months\u2019 worth of data can be misleading. Even still, it wasn\u2019t all bad news on inflation for the month of August.3<\/sup><\/p>\n\n\n\n The U.S. Dollar\u2019s Ongoing Strength \u2013 <\/strong>The greenback continues to have a historic run. In 2022 alone, the dollar has appreciated by 13% against a basket of other developed currencies, and has risen by 17% against the pound. The dollar has also risen to parity against the euro, a first in over 20 years. The reasons for the dollar\u2019s persistent strength are many, but the primary driver has been the U.S.\u2019s economic strength relative to the world in the post-pandemic period. Europe continues to struggle with growth and China has been hampered by its zero-Covid policy, with rolling shutdowns and restrictions still the norm. The United States has also been engaged in monetary policy tightening, and higher rates arguably stand to attract more foreign capital. But an unsung reason for the dollar\u2019s resilience has been long periods of innovation, growth, and improved profitability of U.S. corporations. Innovation spurs investment, which means foreign capital flows into this country and pushes up the value of the dollar. For those who believe the U.S. economy will remain competitive and resilient relative to the rest of the world for a long time to come \u2013 which we believe here at Zacks Investment Management \u2013 a stable and high U.S. dollar is likely to follow.5<\/sup><\/p>\n\n\n\n Retirement Mistakes to Avoid During Times of Uncertainty \u2013<\/strong> While we can\u2019t predict or control the future of the market, it is possible to stay focused on actions that can help guide your future investments. There are common mistakes and habits that we believe can help some investors succeed while others fail. Don\u2019t fall prey to common investing mistakes! 75-basis point Fed rate increase expected in September, producer-price index (PPI) falls slightly, U.S. dollar at parity against the euro.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11935","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=11935"}],"version-history":[{"count":4,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11935\/revisions"}],"predecessor-version":[{"id":11942,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11935\/revisions\/11942"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=11935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=11935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=11935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a>
Many investors, especially those who are trying to plan for retirement, may be wondering how to prepare for what\u2019s to come. When volatility comes to play, there is no definite answer. However, we believe that it\u2019s better to prepare for any given financial situation.
While there are many unknowns at present, we believe there are eight common mistakes that many investors make when planning for retirement. In our guide, 8 Retirement Mistakes to Avoid<\/em>, we outline these mistakes and how you can potentially avoid them.
If you have $500,000 or more to invest and want to learn more, click on the link below to get your free copy:
Learn About the 8 Retirement Mistakes to Avoid!2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/09\/pic1.jpg\")
To help you understand some of these mistakes and how to avoid them, we have created the guide, 8 Retirement Mistakes to Avoid<\/em>.6<\/sup>
In this guide, we provide our thoughts on what we believe are 8 of the biggest retirement mistakes investors should avoid<\/a><\/strong>. If you have $500,000 or more to invest and want to learn more, click on the link below:<\/p>\n","protected":false},"excerpt":{"rendered":"