VIDEO: A Disinflationary Wave Is in Motion
If market volatility has been your foe as of late, this is a great time to get reacquainted and become friends.
Senior Analyst Tony Sagami says there’s been a major shift in the types of stocks that are thriving … and while turbulence is still in the forecast, so are opportunities to pounce on.
Tony is the editor of Disruptors & Dominators, which is seeing double-digit gains across a diverse range of sectors.
Investors with his service are sitting on open gains of 46%, 39% and 35%.
Tony says the market shift was clear to see last month:
In the month of October, the Dow Jones Industrial Average was up 14%. That’s the best October in the stock market's 126-year history.
It’s interesting that the Nasdaq was only up by 2.5%. That shows you a very important shift from the high-tech darlings to the more traditional old economy stocks.
The Dow Jones is filled with pharmaceuticals, energy, and industrials. Those are the things that were considered boring in the past and now, they’re what’s hot!
What’s behind the shift? Tony says a disinflationary wave has been building for some time, and certain industries are riding it well.
There are several key indicators point to slowing inflation. One of them is the Consumer Price Index.
The newest round of CPI data that was released Thursday morning shows that annual inflation eased slightly — down from 8.2% in September to 7.7% in October. (November’s numbers will be released Dec. 13.)
It may not be a big enough decline to give consumers relief in everyday life, but the lower number does signal that the worst may be over.
And it could lead to the Federal Reserve slowing its pace of interest rate hikes next month.
Tony says there are other important metrics that also deserve attention, showing that a disinflationary environment is upon us.
He points to manufacturing costs dropping and the strength of the dollar helping to make U.S. imports cheaper.
In today’s four-minute video segment, Tony discusses what this new investing climate means and the investments to watch heading into the first quarter of 2023.
He says macroeconomic forces can work in your favor right now:
The U.S. economy comes down to two basic things — the makers and the takers. There are companies that make products and there are companies that deliver them to our shelves.
And those are the two parts of the economy that are thriving.
There are some headwinds we’re facing, but the economy is not really suffering.
We all know that the Federal Reserve has raised interest rates by 75 basis points four times in a row, but it also said while it will raise rates again, they won’t be by as much.
I don’t know if you could call it a pivot — maybe it’s more like a pirouette — but the Fed is changing from being hyper-aggressive to slowing down.
And once the Fed stops its attack on interest rates, that’s when the stock market will skyrocket.
Tony and I also explore:
• A recession-resistant stock in the consumer staples sector.
• A rising investment in the energy sector.
• If a so-called Santa Claus rally will arrive this year.
The information in this short segment couldn’t be timelier. Just go to the video box above to watch it now.
Financial News Anchor
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