📈 CPI Takeaways

This data telegraphed where to focus.

CPI Results

CPI released yesterday morning, and results were largely in line with expectations:

The market rose on these results. It cleared the way for rate cuts next week and future rate cuts this year (though maybe at a slower pace than previously expected).

Sectors to Focus On

Diving deeper into what is going on under the hood of CPI points us in the direction of where money is flowing.

It is noteworthy to understand where the inflation came from, because it means that prices are rising in these sectors.

This shows that in line with where we saw inflation, such as travel and used cars, we saw buying yesterday. I expect this theme to continue.

Keep an eye on the names that saw inflation.

Also it is important to see how PPI comes out today to understand whether prices are also rising for companies compared to for consumers, which can help you understand how their profit margins are changing.

Watch this video for the stocks I am buying today: