Once again the share market is making a fool of me- not that I need help to be a fool.
CPI back to the September 2022 high- but the market is performing strongly and that includes financials and real estate.
Remind me again that timing the market does not work?
Any economics that I may have learned is well out of date, and starting to think that Adam Smith may have retired, but I would have thought that, all else being equal, if November CPI is back to its recent high, and admitting that the statistic is a lagging indicator, there is no evidence yet that interest rate hikes are yet having an effect on CPI. Again, all else being equal, but there is no reason here for the RBA to slow down or pause rate increases. True, the RBA can only conclude from the latest release that, if anything, there is no evidence here that rate increases up to November were having an effect at that time.
Something like that.
My take is that rate increases are having an effect, not yet showing in headline CPI, and that this still informs my strategy.
IMHO DYOR
SGP Price at posting:
$3.73 Sentiment: None Disclosure: Not Held
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