Inflation cooled by higher rates, so may company earnings.

Trying to keep these updates as relevant as possible for our readers has become near impossible with markets swinging from optimism to pessimism by the day. At the time of writing (in early November), Wall Street surged to its best day since April 2020 as markets cheered that US inflation cooled more than expected in October. The market’s bullish rejoice relates to the fact that interest rate increases may abate from here. The important point is that interest rates will still rise but less aggressively. Whilst that’s not bullish, it is certainly less bearish for investors. Bond prices too increased on the back of the better inflation data.

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