What will move markets? Kevin R. Kelly discusses just that with CNBC. Read on for more information.
- The CPI reports comes out today and there is considerable questions on about inflation.
- Benchmark’s Kevin Kelly notes that prices of goods and services don’t rise or fall in unison and that there has been a big divergence is between goods and services inflation
- When you break the index into its two main components, Services inflation has averaged 2.2 percent annually while goods inflation has come in at just 0.3 percent.
- Since the end of the last recession, the Fed’s favorite measure of inflation—the PCE ‘personal consumption expenditures’ —has averaged 1.5 percent a year because of that divergence
- Real estate is the best inflation hedge in public markets as it has provided dependable inflation protection as the replacement cost of assets goes up with inflation because cost of labor, land, and materials rises.
What will move markets? Kevin Kelly discusses with CNBC that it’s the earnings rather than the guidance from the Fed that makes this happen. Watch the segment below. Want more insights from Benchmark? Click here.