Investment Strategy Today

Stocks continue to move back into fair value range from overvalued and new entrants into Buy Watch while the CPI annual rate of change has moderated recently after reaching 3.0% in July. August eased to 2.8% and now September has dropped to 2.3% a rate equal to March and only 0.2 points above the beginning of the year.
It may appear sometimes confusing when the Federal Reserve Board talks about continuing to raise interest rates when inflation appears to be moving in a non-inflationary direction. However, their rationale is based on the current annualized rate exceeding the central bank’s target rate of 2.0%.