Investorideas.com

Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS



Share on StockTwits

Stocks markets jump on U.S. inflation retreat - but don't get too carried away

 

August 10, 2022 (Investorideas.com Newswire) U.S. inflation has fallen to 8.5%, dropping for the first time since April 2022, but investors must avoid complacency, warns the CEO of one of the world's largest independent financial advisory, asset management and fintech organizations.

The warning from Nigel Green of deVere Group comes as year-on-year headline inflation in the U.S. retreats from June's 9.1%.

He says: "Stock markets will be cheered by news that the world's largest economy's headline inflation rate seems to have peaked.

"It means the Federal Reserve has more scope not to hike interest rates so aggressively to fight rising prices.

"However, whilst this is good news for investors, a deeper dive is needed to get the full picture.

"Some of the drivers of the 40-year high inflation rate we've been seeing are subsiding. Commodity prices are coming down; and supply chain issues are decreasing - but we still have rising wages, and this will continue to drive core inflation.

"It is still too early to say we're out of the woods with inflation and the impact it could have on the Fed's decision-making."

He continues: "Investors' response should be to avoid complacency and a 'buy everything' mindset and stick to basic investment fundamentals.

"You should look to allocate cash to risk assets, while remaining well diversified by asset type, as well as sector and geography."

That said, the deVere CEO believes stock markets will rally on the news.

"Investors will now be buoyed, and this news will be justification to top-up their portfolios.

Also, stock market valuations no longer looked expensive after a poor first half of the year; there is the persistence of the 'TINA' (there is no alternative) argument; plus big companies are in a generally sound position."

Despite the increasingly bullish sentiment, Nigel Green argues that investors must also ensure that those portfolio additions must help to create resilience and dynamism.

"You must buy wisely in this volatile environment.

"You should bear in mind that long-term and short-duration assets respond differently to rising inflation and interest rates.

"In addition, against the current backdrop, you should be considering less familiar, return-enhancing asset classes which could include venture capital, structured products, cryptocurrencies, high dividend stocks, hedge funds and managed futures, and real estate, amongst others."

Nigel Green concludes: "Building your investments is, clearly, the best way to grow your long-term wealth. But don't get obsessed with one asset class.

"Diversification remains your best friend to reach your financial goals."

t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits