Your Money This Week

Inflation and the Markets

June’s CPI report showed a decline in inflation from May and the lowest CPI number we’ve had in three years (3%). The monthly drop was the first monthly decline in four years, and the number ex-food and energy was also better than expected.

Nice news for consumers.

Good news for those hoping for Fed rate cuts.

Great news for people waiting for a stock market rotation out of large cap AI names into other large caps and small and mid cap stocks, because if the market’s reaction yesterday is any indication, it’s happening.

Yeah, I know one day is meaningless and that’s (possibly) a ridiculous overstatement, but that’s also the type of day we had. Small cap stocks were up more than 3%. The Magnificent 7 all went down.

Bonds did well as yields dropped.

The dollar weakened a bit, which could help international stocks eventually.

This could be a one day head-fake, but it’s worth watching because investment winners rotate and you want to be diversified to take advantage of tomorrow’s leadership.

July Investment Edition of the Wealthy Behavior Podcast

Every month I talk to our Chief Investment Officer, Bob Weisse, about what’s going on in the markets and investment universe you need to know.

There was a lot to talk about this month, including:

• The latest on interest rates and inflation
• Recent narrowing of stock market leadership and what’s driving the winners
• Why a diversified fixed income portfolio is imperative, especially now
• A primer on private credit–a detailed discussion about what is it and how can it fit in a portfolio

You’re not going to want to miss it, especially the discussion around private credit. Bob’s been allocating for our firm to it for the last fourteen years or so. It’s gotten more attention as an attractive asset class, and he walks you through it and where it fits into a portfolio.

Check it out here, or wherever you get your podcasts.