U.S. Inflation Hits New 40-Year High: Investors Need Perspective To See Opportunity

0
1
Stagflation Recession FTSE 100 PPI Stagflation Inflation Statistics Recession Brewing Soft Landings Energy Inflation Jobs Report inflation Wholesale Inflation wage Inflation political agendas inflation surged

As U.S. inflation sets a fresh 40-year high, investors should capitalize on likely panic-selling, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

Inflation Soars To Its Highest Level

The bullish message from deVere Group’s Nigel Green comes as inflation in the U.S., measured by the Consumer Price Index (CPI), soared to its highest level in four decades at 9.1% on a yearly basis in June from 8.6% in May, according to the data published by the U.S. Bureau of Labor Statistics on Wednesday.

Q2 2022 hedge fund letters, conferences and more

 


Find A Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.


He notes: “This figure came in higher than the market expectation of 8.8%.

“The headline-grabbing 9.1% is likely to send markets into a temporary tailspin as it will fuel investors’ fears about an aggressive tightening response from the Federal Reserve.

“Many will be jittery about a potential rate move of 100bps at the end of this month by the U.S. central bank.”

The deVere CEO continues: “Despite the noise, I would urge investors to maintain perspective.

“They should remember that this is backward-looking and puts in the spotlight high gas prices from June that are now coming down, along with many other prices that have also seen a drop since then.”

Should investors manage to maintain a “legitimate sense of perspective,” says Nigel Green, this could be a good time to top-up portfolios.

“As markets continue to be unsteady in the near-term, investors will be using the downturn to their financial advantage by topping-up their portfolios with quality stocks at lower prices.

“The panic-selling will create some important long-term opportunities with high upside potential and low risk possibilities for those who buy judiciously.

“Whilst you may be tempted to stash cash during periods of volatility, experience demonstrates that such attempts to ‘time the market’ almost always fail.

“You should resist complacency, be active, revise and adjust with an adviser to build a resilient and dynamic portfolio, perhaps with some less-traditional, return-enhancing assets.”

Nigel Green concludes: “This is an ideal time to seriously build your wealth by remaining fully and wisely invested and growing your investment portfolios.”

Updated on