Monday, October 12, 2026

Red alert: US inflation is indeed rising! - Part 3

Michigan 1-year inflation expectation: 4.7%

All the recent inflation indicators had been showing the US inflattion would continue trend up and the US consumer sentiment had been affected (trending down) by these inflation indicators.

US consumer sentiment: 46.3 points

Thus, it is just a matter of time that the US consumers will pull back on their spendings after frontloading their essential purchases.

What about investors?
The investors are putting their money in money market funds in view of the rising inflation.  Why?
This phenomenon happens because the money market funds are starting to pay good interest yields which are considered good returns when compared to the high volatilities in the stock markets now.  Morever, these ready monies (cold hard cash) in the money market can be redeployed into the the stock markets for bottom fishing cheap valued stocks during a financial crisis.

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