|Last week's market recap:|
Higher energy and food prices bumped inflation higher again in June. We still expect that the Fed will hike interest rates by another 0.75% later this month; however, the odds of a 1.00% rate hike have increased.
1) There are signs of inflation peaking. Oil and gas prices have dipped, down 11% and 4% from June. Many other commodities such as, wheat, nat gas, copper, lumber, and cotton are also down. If these trends continue, June may mark the last hot month of headline inflation. This should provide some inflation relief to the Fed and consumers.
2) Expected 10-year asset class returns have risen. Markets have been hit hard this year, but there is upside to down markets… lower valuations and higher interest rates means models suggest higher expected long-term results.
As always, reach out to us with any questions.
CRA Investment Committee
Matt Reynolds CPA, CFP®
Tom Reynolds, CPA
Robert T. Martin, CFA, CFP®
Gordon Shearer Jr., CFP®
Jeff Hilliard, CFP®, CRPC®
Joe McCaffrey, CFP®
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