Last week’s rally to record highs was due, at least in part, to a rather tame CPI report released on Wednesday. Inflation has been at the heart of nearly every rally and every decline over the past few years. Clearly, we saw inflation soaring throughout 2021 and 2022, but since then, the annual core CPI has been consistently dropping, despite a Fed that says they haven’t seen enough of a drop toward their 2% target level to warrant a fed funds rate decrease. Here’s the Core CPI chart that illustrates the rise and fall of inflation since the 2020 pandemic began: Call me crazy, but I see an annual Core CPI rate that is tumbling. History tells us that when inflation peaks and rolls over, it’s a very bullish signal for U.S. equities. 2023 and 2024 has been no different. However, there is one inflation problem that no one is…
