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Be prepared for a little inflation - 11/17/15

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The U.S. Department of Labor released October’s Consumer Price Index (CPI) today. CPI is reported on a monthly basis to simply indicate whether consumer good products and services prices are increasing or decreasing overall. October’s numbers reported a 0.2% increase in CPI which is a reverse from a decrease reported during the previous two months.

This is a further indication of Interest Rate Hikes

October’s CPI increase shows that the U.S. is seeing some sign of inflation. Which is indicated when things we purchase become a little bit pricier such as gas, electricity, and food. This is not necessarily bad news, when prices for goods become a bit more expensive we can hope it will be enough to stabilize the economy and create a balanced ecosystem for consumers as well as companies. The Fed is thinking the same thing and will most likely utilize this assumption to slowly increase interest rates. If the CPI continues to increase month over month this means the value of the dollar will rise over other foreign currencies such as the Euro. If this is the case we may all benefit from another year of traveling overseas cost efficiently. Stay tuned as we keep you updated.
At the time of this commentary Michael Ojo, his family and/or clients of Golden Door Asset Management held positions in IBM Corp. (IBM) — although positions can change at any time.
Michael Ojo is the Managing Director of Golden Door Asset Management, LLC,a registered investment advisor specializing in individual and high net worth individual private wealth management. For more information on investing with Golden Door Asset Management, LLC please visit our website, www.goldendoorasset.com. Golden Door Asset Management, LLC is a New Jersey LLC, with its principal office located in Princeton, NJ.
Michael Ojo is also the publisher of CareStocks, a newsletter focusing in on healthcare services, medical equipment, technology and real estate stocks. More information to the newsletter can be found at www.carestocks.com.
© 2015 Golden Door Asset Management, LLC. All rights reserved.
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