This is going to affect the market, are you prepared??
How much better can things get?
We were at 9.1% and now we are down to 7.1% inflation, the forecast is 6.5%. The market expects inflation to drop 7.1% to 6.5%. The market will react based on if the report comes in at what is expected or comes in lower or higher. If inflation hits 6.5% or potentially reports lower we are looking forward to a great day in the market... However, if the report comes up short showing inflation is not were it is expected and not as "Under Control" as many think the market my take a un expected hit.
If the market reacts positively initially it may continue to sell back off for days to follow, if the market reacts negatively it may positively recover for the days to follow. There are lots of possibilities but one thing to remember 1 day, 1 report, doesn't mean the market will change that way forever.
Still confused on how inflation affects the stock market?
Inflation can have a complex impact on the stock market. In general, if inflation is expected to rise, it can cause stock prices to fall, as higher inflation can lead to increased interest rates, which can make borrowing more expensive for businesses, leading to lower profits and lower stock prices. Additionally, as the cost of goods and services increases, consumer spending may decrease, which can also lead to lower profits for companies.
On the other hand, if inflation is low or under control, it can help to boost consumer and business confidence, which can lead to increased spending and investment, and in turn, can help to support stock prices. In some situations, companies can also benefit from rising inflation, particularly if they are able to increase their prices in response to higher costs.
In summary, while low or stable inflation can be beneficial for the stock market, high inflation can be detrimental to the market and companies.
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The stock market is dropping and now is the best time to start investing in the stock market! Watch me trade live in the stock market. My learn plan profit group gets to watch me trade live every day, and get a feel of what they experience daily. -Ricky Gutierrez