This month, Jason Weaver discusses the Federal Taper versus raising rates, thematic investing and deflationary forces.
Federal Taper vs Raising Rates
In the December 2021, meeting, the Fed. said it would accelerate the pace of its tapering of bond purchases and eyed three rate hikes in 2022.
Taper: gradual trimming of the Fed’s purchases of Treasuries and government-guaranteed mortgage-backed securities to wean the economy off extra stimulus
Raising Rates: The Fed raises the fed funds rate to increase the cost of debt and tighten the economy.
Thematic Investing
Healthcare Innovation & Disruption
5G
Machine Learning & AI
Deflationary Forces
Technology is advancing at a rapid pace, exerting downward pressure on prices. Price inflation slows when production of a good or service can scale to meet current & future demand. As more industries adopt new technologies, there will be less price inflation across the whole market
The CPI reflects the prices urban consumers pay for a basket of goods and services—including household products, recreational items, and other categories—mostly in traditional (as opposed to e-commerce) transactions.
Digital Price Index, based on data from millions of online transactions gathered by Adobe Analytics. Used by 80 percent of Fortune 500 retailers, the Adobe data represent about 15 percent of all retail e-commerce tabulated by the US Census Bureau.
