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 founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
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.
