Since it’s a holiday-shortened trading week, I’m taking a break from the World Wealth Gauge video. In case you missed it, I gave an update on my prediction a few days ago.
You see, the inflation drumbeat is getting louder by the day and it can upset the markets.
October saw the highest run-up of inflation in 31 years.
That’s a concern as Fed officials have marked their inflation outlook for 2021 at 2%. But by September we saw inflation running at twice the Fed’s 2% target.
The reason inflation is more worrisome this time is because the economy is flushed with money but it is still recovering from the slowdown it witnessed during the pandemic. And any further rise in prices can only make things worse. It can pose a downside risk to stock markets as well as the US dollar.
After all, when the market is nervous, the reason for a fall can be anything at all – inflation, crude oil, the US Fed, or a geopolitical event.
I believe it’s important to know how you can be prepared for the volatility.
While the increased market movement may lure you to make hasty decisions, it’s time like these when you should have a solid trading strategy in place and follow it to the T.
As far as my view on the market goes, below is a short clip where I talk about my predictions for this quarter and how they have come to fruition so far.
But I believe we’re just getting started and there are still pockets of opportunity in this market if you can spot them.
Probably some of these might help you get a sense of where the markets are headed and navigate through the volatility in the near future.