
PRODUCER PRICES DECLINE – FED NOT YET BUCKLING
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Producer Price Index
Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- One day after better than expected Consumer Price Index (CPI), Producer Price Index (PPI) is also softer than expected.
- Investors should ignore year over year numbers and instead focus on month over month numbers.
- To be successful, investors should not get caught up in their viewpoint. More importantly, they should not justify their viewpoint by picking and choosing the data.
- Investors should ignore year over year numbers and instead focus on month over month numbers.