September CPI

The data regarding the consumer price index known short as CPI for the month of September got released by the U.S bureau of labor statistics 4 days ago averaging a staggering 8.2% year-over-year inflation.

What does it mean?

This new data tell us that inflation is still rising despite the FED's efforts to bring it down by aggressively rising interest rates in the past year.

We can note that this increase is much slower than the one we witnessed in July which might indicate that we might see lower inflation in the coming months as it loses steam.

What are the implications for investors?

As long as the FED is maintaining its goal of bringing inflation down we can expect the FED to continue its hiking policy. Adding to that many FED representatives said that their goal is clear "Bringing down inflation, even if this means crashing the stock market and the housing market."

No one knows for sure what is coming next, we might see a short squeeze sending prices up, or maybe we are going through a bottom phase or we might just see lower lows. One thing for sure  "Don't fight the FED"

We should follow closely the FED actions to be able to react swiftly and accordingly to any change that might happen in's behavior. Especially with much political pressure from U.S representatives and foreign institutions like the European central bank, or the IMF urging the FED to stop raising interest rates to prevent a worldwide recession caused by a too-strong dollar.

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