🦧 why the sudden drop?

🤔 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)