Morning Brief – March 14, 2022

By Editor•

Inflation is just a bit out of control.

With the cost of gas, food, and housing, consumer inflation rocketed 7.9% year over year – the worst spike we’ve seen since 1982.  Thanks to the war and the Federal Reserve printing trillions of dollars, it’s only gotten worse.  

However, there’s hope inflation will cool off a bit this week.

On Wednesday, the Federal Reserve is expected to raise rates by a quarter percentage point from zero.  However, the Fed has to be careful here, especially with the Russia-Ukraine war threatening to slow economic growth.  Not only does the Fed need to cool inflationary fears, it needs to avoid inducing a potential recession.  

In fact, according to CNBC: “The central bank’s statement and comments from Fed Chair Jerome Powell on Wednesday will be closely watched for guidance on how central bank officials view the Ukraine crisis, and how much it could affect their outlook and the path for interest rates.”

Here’s hoping the Fed gets it right this week.

Markets

  • The Dow is up 330 points to 33,143
  • The S&P 500 is up about 38 points to 4,230.75
  • The NASDAQ is up 88 points to 13,377.25
  • Gold prices are down about $24 to $1,964.32
  • Bitcoin is up slightly to $39,076.61
  • Oil prices are down about $5.40 to $103.90
  • The VIX is up slightly to 30.54

 

Trading Tips

Inflation is a tad out of control – just a tad.

With the cost of gas, food, and housing, consumer inflation rocketed 7.9% year over year – the worst spike we’ve seen since 1982.

And, according to MarketWatch.com: “The numbers are eye-watering, and there is more to come,” said Eric Winograd, senior economist at asset management firm Alliance Bernstein. “The peak in inflation will be much higher than previously thought and will arrive later than previously expected.”

Unfortunately, the White House expects to see “substantially” higher inflation moving forward, which is just so comforting to hear.

According to the Washington Examiner: “The White House Council of Economic Advisers noted that ‘there has been substantial run-up in energy prices since February resulting from the Russian invasion of Ukraine’ and that ‘energy and commodities prices will likely contribute substantially to inflation in the coming months.’”  

 Here are a few potential ways to protect your portfolio.

Insider Buying – Crocs Inc. (CROX)

After getting stomped, CROX insiders are buying.  Director Doug Treff paid $1.5 million for 17,700 shares, at an average price of $84.13. Crocs Chairman Thomas Smach paid $986,025 for a total of 11,897 shares, an average price of $82.88. 

 

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