In this week\u2019s issue of Steady Investor, we explore current events impacting the market, such as:<\/p>\n\n\n\n
\u2022 The fall in the unemployment rate
\u2022 Core inflation cools in July
\u2022 Possible higher gas prices soon<\/p>\n\n\n\n
The Unemployment Rate Falls, But So Does the Pace of Hiring<\/strong> \u2013 The Labor Department reported that nonfarm payrolls rose by 187,000 in July, up from a revised 185,000 new hires in June. The unemployment rate fell to 3.5%. By most accounts, the U.S. jobs market remains in solid shape, but these recent figures signal a cooling that may come as welcome news to the Federal Reserve. Though 187,000 new hires in July signals the labor market remains tight, it\u2019s meaningful to note that this pace is a marked step down from the 399,000 jobs\/month posted in 2022 and the 287,000 jobs\/month pace of the first five months of 2023. While private sector pay rose 4.4% in July \u2013 which is materially higher than the pace needed to achieve 2% inflation \u2013 the takeaway from this jobs report is that the labor market appears to be finding a balance of not being too hot nor too cold. In other words, the Fed may interpret recent data in the jobs market as being on a steady path to a soft landing.1<\/sup><\/p>\n\n\n\n Explore the Do\u2019s and Don\u2019ts of Stock Market Volatility<\/a><\/strong><\/p>\n\n\n\n Every investor understands the dread and anxiety of watching their investments take a turn when the market fluctuates.<\/p>\n\n\n\n It is impossible to avoid volatility, but there are ways you can minimize the worst impacts of a volatile market. In our newest guide, \u2018The Do\u2019s and Don\u2019ts of Stock Market Volatility\u2019 we provide recommendations for investors, based on 30 years of expertise. We also explore:<\/p>\n\n\n\n \u2022 3 best practices to successfully manage periods of market volatility If you have $500,000 or more to invest, get our free guide today!<\/p>\n\n\n\n Download Your Copy Today: The Do\u2019s and Don\u2019ts of Stock Market Volatility2<\/sup><\/em><\/a><\/strong><\/p>\n\n\n\n Core Inflation Cools Slightly in July<\/strong> \u2013 Readers may sometimes get confused by the myriad inflation measures cited in the media. CPI, the core PCE price index, trimmed-mean CPI, PPI, and so on. The Atlanta Federal Reserve tracks nine different inflation measures, with each one often sending different messages about underlying inflation trends. To simplify matters and to get at the root of what influences the Fed and interest rate policy, readers should focus on just two inflation measures: core CPI and the core PCE price index. The Fed cares more about core prices because they tend to be better predictors of future inflation trends. The Labor Department reported on Thursday that core CPI rose by 4.7% year-over-year in July, which marked a slight cooling from June\u2019s 4.8% annual rate. Month-over-month data offered a similar takeaway of improving conditions, with core CPI rising 0.2% from June to July. Another way of looking at core inflation is by tracking the 3-month annualized rate, which in July came in at 3.1% \u2013 the lowest print in two years.3<\/sup><\/p>\n\n\n\n Why Americans Could See Higher Prices at the Pump in the Coming Weeks<\/strong> \u2013 Many readers have likely noticed gas prices ticking higher lately. Higher oil prices are to blame. In the past six weeks, benchmark crude oil prices have risen over 21%, following decisions by Saudi Arabia and Russia to cut production in a targeted effort to mitigate rising global supply levels. Supply and demand of course impact the price of crude, and the demand side of the equation has also had an impact \u2013 investors have grown more optimistic about a soft landing in the U.S., which implies better-than-expected demand for oil. When oil prices are rising and are expected to rise further, the price of gas tends to follow. But other factors are affecting the price at the pump \u2013 summer heat makes refining oil into gas more costly, since it slows the cooling process; and a looming hurricane season has many oil futures traders betting that refineries could take a hit to production later this summer and fall, which also puts upward pressure on prices.4<\/sup><\/p>\n\n\n\n Overcoming Current Market Volatility<\/strong> \u2013 It is impossible to avoid volatility, but there are ways investors can minimize the worst impacts of a volatile market.<\/p>\n\n\n\n
\u2022 3 most common mistakes investors make, and why they are so damaging to your long-term investing goals
\u2022 Historical data that supports our conclusions and underscores the recommendations we propose<\/p>\n\n\n\n