Sep 14, 2022
“Everybody has a plan till they get punched in the noose” boxer Mike Tyson is quoted. CPI day yesterday brought the recent market rally to an abrupt halt as the narrative of peak inflation is put into question. This was a clear punch in the noose for investors with Nasdaq down 5.2% and S&P 500 down 4.3%. US consumer prices advanced more than expected in August driven by costs of shelter, food and medical care despite the fall in energy prices. With core inflation still on the rise, the Fed will have no other choice but pursuing its restrictive monetary policy. We stay defensive in our portfolios and invest only in undervalued quality companies.