If you do the math this is literally the sign of inflation peaking.
Inflation is a YoY measure. The YoY inflation rate in April 2022 (8.1%) was lower than March 2022 (8.5%). So prices are basically the same as last month, meaning inflation could very well be peaking.
With stock prices continuing to fall, this is the best scenario in months for buying stocks.
July 2021 inflation was 5.4%. It’s pretty unlikely that the year over year rate of change is going to be a friendly comparison for the market for quite some time. So this will likely just continue despite the fact that prices are staying the same from here on out. People just don’t understand or do the work, And if the market is falling then everyone just follows the trend.
Personally, I’d rather make 10 bags than avoid a 50% drawdown. I own tech stocks that are theoretically exposed to inflation but whose earnings and guidance have been beat-and-raise throughout this whole imbroglio.
As a famous rapper once said, “I'm tired of hearin' 'bout who you checkin' for now. Just give it time, we'll see who's still around a decade from now.”
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