With softening inflation reported at the consumer level this morning preferred stocks and baby bonds reacted positively with gains of around 2/3rds percent today–there was a sprinkling of red but it was minimal.
At a minimum todays CPI report MAY soften the Fed’s drive to raise interest rates–but on the other hand there is plenty of time before the next FOMC meeting (September 20-21) for much more data to be reported. Remember we just had a stellar employment report and both employment and inflation will again be reported before this meeting. If the next reports show economic softening I think we will see a 50 basis point hike in September–if not 75 basis points. We’ll just have to wait and see.
I deployed another 2% of my dry powder this week which gets me to the 17% area–on the way to 10%. My purchases have been in the usual suspects I have previously outlined.
My accounts are off in the 1-2% area for the year and I am quite satisfied with that performance all considered. From my reading of comments most folks are off just a bit with some that do more ‘flipping’ a bit better.