Key Points
- CPI jumped by almost 0.9% in March, fueled by a steep rise in crude oil prices.
- A 21.2% jump in gasoline prices accounted for nearly three quarters of the monthly CPI increase.
- We expect further waves as rising costs reach agriculture, mining, and transportation before filtering through to the broader economy.
- The S&P 500 stalled at 6800.
- University of Michigan consumer sentiment plunged to its lowest level since the late 1970s.
The first wave of price hikes hit CPI in March, with the index jumping 0.865%, fueled by a steep rise in crude oil prices driven by the war in the Persian Gulf.
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Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.