CPI Shows Stocks Rising: Capitalize Ahead of Fed’s Next Move

Following the soft August Consumer Price Index (CPI) report this morning, a “buying window” for gold has opened in equities. But it might not stay open for long, so if you want to cash in, time is of the essence.

Despite the markets being up about 15% year to date, the stock has been stuck in neutral for the past two months. Indeed, the market made these gains in the run-up to the Fourth of July. And since then, stocks have gone virtually nowhere.

More than 60 days later – zero upward progress. It’s been a frustrating market, to say the least.

But we think that’s all about to change.

The August CPI report showed that the US economy’s overall inflation rate fell to 2.5%. On a three-month annualized basis, the inflation rate was just 2.1%. Excluding shelter costs, it fell to 1.1%.

Now that bears repeating. Excluding the cost of housing, the U.S. inflation rate fell to 1.1 percent in August.

The inflation problem that has plagued the US economy for the past two years is finally over.

And that means the Federal Reserve can now come to the stock market’s rescue.