Goldilocks Moment for Stocks and Bonds as Inflation Data Supports Fed's Stance

Finance Berita

Goldilocks Moment for Stocks and Bonds as Inflation Data Supports Fed's Stance
Goldilocks,Federal Reserve,Consumer Prices

Investors are hopeful that the Federal Reserve can bring down consumer prices without hurting the economy, creating a Goldilocks environment that benefits stocks and bonds. Inflation data released on Tuesday showed that consumer prices were unchanged in October, signaling a turning point.

A trader reacts as a screen displays the Fed rate announcement on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023. REUTERS/Brendan McDermid/File Photoreport is bolstering hopes that the Federal Reserve can bring down consumer prices without hurting the economy, a so-called Goldilocks environment that investors believe will benefit stocks and bonds.

Both asset classes have ripped higher in November following a months-long wobble, fueled by hopes that the Fed was unlikely to deliver any more of theInflation data released on Tuesday supported the view that a turning point is near: consumer prices were unchanged on a monthly basis for October, the first such reading in more than a year and a softer figure than analysts were expecting.“The broader market has been challenged with this consensus negative view about both a recession and inflation," said Eric Kuby, chief investment officer at North Star Investment Management Corp. "Reality is telling a different story. This does feel like a Goldilocks moment for the entire marke

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