Next week's CPI numbers likely to stay in the same 'problematic area': Portfolio manager
So I would say that we were in a phase where good news was actually bad news because the economy was essentially overheating and inflation was starting to come back up again. I think what we’re seeing now is that that was temporary. We were expecting that it’s temporary and we will see it now shift to a phase which is more bad news is good news because growth is now moderating, inflation should be moderating. That gives the Fed room to cut rates. And try and avoid an over tightening situation. I think this is a phase that can last for some time, but we need to stay alert to what comes after that. OK. And of course, there’s going to be guideposts along the way to help us, of course, navigate the market. We’re going to be getting CPI and PPI readings next week. Do you have any? Inclination or any feelings towards the data that’s yet to come. Yeah, I think it’s very important to remain forward-looking. And so the Prince that we’ll see now are likely to still be in the same kind of problematic area, meaning that it’s still hot too high, it’s above target, it’s continued to show a set back compared to late last year. But importantly, the forward-looking indicators that we watch all seem to be indicating a moderation of both growth and inflation from here. So I think there will be a very short term reaction perhaps to the CPI, but I think. Investors should remain much more forward-looking at this point.