Fresh YoY #cpi and #ppi printings have come in at 3.4% and 1%, respectively; CPI came in hotter than expected while PPI came in cooler. What’s more interesting than the nominal printings of these inflation indexes is how these indexes are trending. Considering afik tori podcast download the trailing 3-month MoM printings of CPI and PPI, inflation is trending downwards vis-a-vis an annualized rate of 1.6% and -2.4%, respectively. These figures are significantly lower than the latest YoY printings we’ve received this week (not to mention significantly lower than the #fed’s 2% inflation target rate). The major difference between YoY and trailing 3-month annualized inflation rates could suggest that inflation has been dramatically trending downwards in recent months. The #bondmarket seems to have caught on to this given a sharp increase in the 10Y-2Y spread.
Or 50bps? Powell’s Big Decision: Will He Shock The Markets Today?
On August 15, 2024, defendant Yakov Cohen was sentenced to 66 months of imprisonment to be followed by 3 years of supervised release. Restitution is likely to be determined on or before October 11, 2024. The PCE Price Index (Personal Consumption Expenditures Price Index) is a key measure of inflation in the United States and is the Federal Reserve’s preferred gauge for tracking how prices are changing for consumers. This highly anticipated report gives key insight into the upcoming direction of monetary policy, which has tremendous implications for both equity and bond valuations.
The fact that real borrowing rates are so low makes this arrangement even sweeter. If their portfolio performed better than their borrowing costs (some as low as 0.87%), these investors would have been worse off exchanging their securities for cash. The banks who have lent money to these wealthy equity holders will now require the borrowers to post additional collateral in order to uphold their collateral margin accounts. These borrowers have the power to initiate a selloff of assets for cash if they believe the securities are heading for a dive. They probably won’t do that since they will get billed by tax authorities as soon as they sell and realize a capital gain (we are speaking of investors who have held these portfolios for decades). In the case of a selloff, market prices would drop even further causing a downward spiral for prices.
Markets React To Presidential Election
On June 28, 2024, defendant Sabrina Elofer was sentenced to time served and three years of supervised release. In addition, she was ordered to pay $2,924,982.00 in restitution. One of Tori’s core teachings is that economic uncertainty is not an anomaly—it’s part of the cycle. Booms and busts, bull and bear markets, interest rate hikes and recessions—these are all recurring elements of economic life. By understanding this rhythm, Tori explains, investors can better prepare themselves and avoid knee-jerk reactions. Welcome to Markets Made Simple designed for young to middle-aged investors who want to learn and become more familiar with financial markets.
Interest Rates & Bonds Made Simple
On October 20, 2023, defendant Gilad Mazugi was sentenced to 10 months of imprisonment to be followed by three years of supervised release. In addition, Mazugi was ordered to pay $1,531,341 in restitution. On October 30, 2023, defendant Ori Maymon was sentenced to 36 months of imprisonment to be followed by three years of supervised release. In addition, Maymon was ordered to pay $1,899,074 in restitution.
