Expect Higher Inflation, Miracles do not happen overnight..!
On May 30th, 2021, I wrote an article about Inflation "Accelerated inflation in the past year entered a new phase!"
Let's see what has happened to inflation
CPIAUCSL
since May 2020:
May 2020:
CPIAUCSL
Dropped from +1SD to -1SD (in 3 months)
May 2020 - February 2021:
CPIAUCSL
Passed +1SD once again (in 9 months)
April 2021:
CPIAUCSL
Passed +2SD
May 2021:
CPIAUCSL
Passed +3SD
What makes all these data important is the rate of change in the past 4 months!
What is the Rate of Change (ROC)?
The rate of change (ROC) is the speed at which variable changes over a specific period of time.
Today rate of change for inflation is at the highest level since September 2008..!
Several asset classes perform well in inflationary environments.
Tangible assets, like real estate and commodities, have historically been seen as inflation hedges.
Some specialized securities can maintain a portfolio's buying power including certain sector stocks, inflation-indexed bonds, and securitized debt.
Inflation-sensitive investments are accessed in a variety of ways as both direct and indirect investments.
If you are interested to learn more about higher inflation and how it could affect markets read the educational articles:
Educational Article:
Standard deviation:
https://www.investopedia.com/terms/e/empirical-rule.asp
Rate of Change:
https://www.investopedia.com/terms/r/rateofchange.asp
Inflation:
https://www.investopedia.com/articles/investing/080813/how-profit-inflation.asp
Let's see what has happened to inflation
CPIAUCSL
since May 2020: May 2020:
CPIAUCSL
Dropped from +1SD to -1SD (in 3 months)
May 2020 - February 2021:
CPIAUCSL
Passed +1SD once again (in 9 months)
April 2021:
CPIAUCSL
Passed +2SD
May 2021:
CPIAUCSL
Passed +3SD
What makes all these data important is the rate of change in the past 4 months!
What is the Rate of Change (ROC)?
The rate of change (ROC) is the speed at which variable changes over a specific period of time.
Today rate of change for inflation is at the highest level since September 2008..!
Several asset classes perform well in inflationary environments.
Tangible assets, like real estate and commodities, have historically been seen as inflation hedges.
Some specialized securities can maintain a portfolio's buying power including certain sector stocks, inflation-indexed bonds, and securitized debt.
Inflation-sensitive investments are accessed in a variety of ways as both direct and indirect investments.
If you are interested to learn more about higher inflation and how it could affect markets read the educational articles:
Educational Article:
Standard deviation:
https://www.investopedia.com/terms/e/empirical-rule.asp
Rate of Change:
https://www.investopedia.com/terms/r/rateofchange.asp
Inflation:
https://www.investopedia.com/articles/investing/080813/how-profit-inflation.asp
評論:
Another Jump in inflation data as predicted..!