📑 Research Notes for 2023-02-21
This week, we look at the a higher-than-expected CPI print, the attractiveness of cash, the case for a 50 bps rate hike, and retail investor inflows.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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CPI Giving Fed a Valentine's Heartache.
According to KPMG Chief Economist Diane Swonk in an interview with David Westin on "Balance of Power," the most challenging phase in the battle against inflation is yet to come. In January, US consumer prices increased by 0.5%, the highest in three months, resulting in an annual inflation rate of 6.4%, which was higher than expected.
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Cash Doesn't Look So Bad Right Now.
Russ Koesterich, BlackRock Global Allocation Fund portfolio manager, says cash doesn't look that bad right now. He's on Bloomberg Surveillance.
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Mester Sees 'Compelling' Case for 50 Bps Fed Rate Hike.
Federal Reserve Bank of Cleveland President, Loretta Mester, stated during a speech at an event organized by the Global Interdependence Center and the University of South Florida Sarasota-Manatee that her opinion remains unchanged that the Fed funds rate will need to be increased to over 5% and kept at that level for a significant period of time, as the current data has not affected her perspective on this matter.
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Retail Investors Are Pouring A Record $1.5 Billion Per Day Into The Stock Market.
At the beginning of this year, U.S. equity markets have been rapidly advancing, and as a result, individual investors have been purchasing stocks at an unprecedented rate. According to VandaTrack, a research firm, there has been an average daily influx of $1.51 billion into U.S. stocks by retail investors over the past month, which is the highest amount ever recorded.
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Last Week’s Market Performance Heatmap
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Curated by Joseph Lu, CFA®
Joseph is the founder and a managing director of Conscious Capital Advisors, as well as a CFA® Charterholder.
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The information presented in this newsletter is for educational purposes only and is not a solicitation or recommendation for any specific security, product, service, or investment strategy.
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