![Image](https://investorplace.com/wp-content/uploads/2025/02/100-bill-inflation-shadow-banner.png) For many professionals, Sundays are a day to prepare for the week ahead. I’d wager that’s how most investment pros finish out the weekend. And this Sunday is certainly no exception, as we face a busy ‘inflation week’ ahead. That is, over the next few days, we’ll receive a string of important reports that collectively tell us how hot (or not) inflation ran throughout the month of January. We’ll get the Consumer Price Index (CPI) report on Wednesday, Feb. 12, the Producer Price Index (PPI) report Thursday, Feb. 13, and the Import/Export price report Friday, Feb. 14. If those inflation reports are good, stocks could soar this week. If they’re bad, there’s a large chance stocks will plummet. Fortunately, we think this week’s data will be very good. While all three of these upcoming inflation reports matter, the CPI data is arguably the most important metric by an order of magnitude. And our research suggests that January’s CPI results will be great for stocks. That is, for the past five months, inflation has been choppy. The headline CPI rate dropped in August and September, but then it rose in October, November, and December. The core CPI rate – which excludes volatile food and energy prices – fell in August, September, and October but rose in November and December. We haven’t had a month where both headline and core inflation fell since July 2024… Until now. Real-Time Inflation Data Is Very Positive According to real-time estimates from the Cleveland Fed, this week’s CPI data is expected to show a 4-basis-point decline in January’s headline inflation rate and an 11-basis-point decline in the core rate. It should be the first report since July 2024 that includes a decline in both the headline and core CPI inflation rates. Better still, February’s CPI report is expected to show the same. Though it is still early, real-time estimates for headline CPI are 2.62% in February (a 23 basis point drop), while core CPI estimates are at 3.02% (an 11 basis point drop). In other words… after five months of choppy inflation data… we are now entering a period where inflation should steadily drop for two straight months. And that period starts this week with January’s CPI report. ![chart](https://investorplace.com/wp-content/uploads/2025/02/us-inflation-velocity-table.png) That is exceptionally bullish for stocks. Inflation has been a huge thorn in the stock market’s side for the last several years. Since 2022, when inflation has risen, stocks have consistently struggled – and when inflation has fallen, stocks have usually soared. If we are about to enter a disinflation economic regime, as the real-time data suggests, stocks are likely on the launching pad, gearing up for takeoff. And the same goes for cryptos. Recommended Link | | Luke Lango was ranked #1 by TipRanks in 2020. He’s picked out over 350 stocks have double or tripled. And more than 33 picks that made 10x or more. He was early on Nvidia, Microsoft and AMD. Anyone that held on had the chance to see gains of 3,570%, 819% and 7,120% respectively. Now, he saying the #1 Tech Stock of 2025 — is not an AI company. | | | The Final Word Over the past few years, cryptos have developed a strong correlation with stocks. When stocks rise, cryptos tend to go up, too. But for a variety of reasons, even beyond the stock market’s bullish setup, we think cryptos are set to soar in the coming months. To be sure, the crypto markets have been exceptionally volatile recently. These are inherently very risky assets – not something that anyone should dedicate their whole portfolio to. But cryptos can really soar when the time is right… and we see a major rally up ahead. Think about it: love him or hate him, Donald Trump is the most pro-crypto president in U.S. history. And he is implementing three specific new policies that could ignite the biggest crypto super-cycle ever. Not to mention, his pick for Treasury Secretary – Scott Bessent – is as pro-crypto as they come. And his past comments suggest a pragmatic approach, advocating for “smart regulation” that encourages innovation without compromising oversight. Given that outlook, we are obviously bullish on the crypto markets and believe this is a good time to own some altcoins. But this exciting fundamental backdrop isn’t the only reason we’re so bullish right now. Catch the webinar’s replay to learn why I think this could be the year of huge altcoin gains… much like 2021, when dozens of altcoins rallied more than 5,000% in a single year. And discover how my team’s quant-based trading algorithm attempts to identify a predictable pattern before cryptos surge, potentially as much as 10X, 50X, even 100X in a hurry – sometimes in 90 days or less. Get ready for an exciting year in the crypto markets. Sincerely, |
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