November Edition of Portfolio Construction: Short-Term Pain, Long-Term Gain
The October U.S. CPI, as reported at an annualized rate below 4%, leads to some hope that the Fed’s hiking has been effective, and rates are close to terminal. Investors have re-priced terminal Fed Funds rates throughout the year, from as low as 2% to most recently 5%. The current CPI details reveal that prices of services are finally cooling while goods are under increasing pressure. Online retailer Amazon recently commented that they expect this December to be one of the toughest Christmas holiday seasons for sales as demand continuously declines in America.
Download the full report below.