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🦧 why the sudden drop?
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🦧 why the sudden drop?

Ape of Omaha
Sep 14, 2022
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🦧 why the sudden drop?
www.wiseape.fyi

🤔 feels a lil’ too much

 

worst we’ve seen in a while

  • the dow dipped almost 4% yesterday – this is the biggest drop seen since jun ‘20

  • only five stocks in the s&p 500 closed the day on a positive note

 

the i-word hit different this time

  • the labor department reported august consumer price index (cpi)

  • prices were up 8.3% YoY, above economists' expectations of 8.1%

  • core inflation (excludes food and energy costs) rose 6.3% YoY (annualized), up from 5.9% in july

  • the greater-than-expected rise in headline inflation is alarming, especially because of recently falling energy costs

    • this means we cannot solely blame rising energy prices for crazy inflation

 

it’s the same old story

  • fed’s been raising rates, but the anxiety sinks in – inflation’s rise is unstoppable, and fed will most likely have no choice but to raise rates more aggressively yet again

  • imo: although it’s the same story and reason over and over, the market’s anxiety is now starting to grow on a fundamental level

    • that is: is there nothing the fed can really do to solve inflation? the economy is undergoing serious hurt and damage as a sacrifice to these series of rate hikes, can we see a single signal that inflation will come down a lil’ bit?

 

i hate to be saying this, but we will see…

💡 something im thinking about

word. (click image)

that's all, folks 🐒

 
as always, i’m no financial advisor! (i’m no substitute for professional financial services)
 

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