I read the Inflation Report yesterday, so you don’t have to.
Trailing 12-month inflation is now at 5%, the lowest it’s been since May 2021.
It costs 6.4% LESS to drive to the grocery store, but it costs 8.5% MORE to fill your pantry.
And unless you HAVE to buy a house right now, then don’t. It’ll cost 8.2% MORE than last year. (And that’s just the price of the house. It doesn’t include the 7% mortgage)
In adjacent news, the Fed warned of a “mild recession” later this year due to their rate hikes.
SO WHAT’S IT ALL MEAN?
The Fed has indicated before that if they had to pick, they’d choose a recession over inflation, meaning if we have to go into a recession to reduce inflation, then so be it.
Their reasoning makes sense. Recessions are temporary, but inflation can last for a very long time.
Now I’m hopeful that:
Best inflation number in 2 years + a projected recession = pausing the rate hikes.
That would immediately reduce the chance of a recession, but likely wouldn’t stop the momentum of the inflation downtrend.
THE TAKEAWAY
I’m still aggressively saving right now, dumping every penny I can find into my portfolio (the same aggressive portfolio model most of our FZ Members are in).
Regardless if we get a soft landing or a recession this year, the last 18 months has been the greatest investment opportunity I’ve seen in 15 years.
And I’m gonna keep backing up the truck until it’s over.
