Investing involves risk. Depending on the types of investments, there may be varying degrees of risk.
Investors should be prepared to bear loss, including total loss of principal.
Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you, Brandy.
Brandy Auterson-Hurst:
So last week we talked about commodity prices moving a little higher. So when looking at other indicators of inflation, do you see anything to be concerned about?
David Nelson:
There’s always concerns that we have. I guess, we’re paid to be nervous, as I tell clients. But when we look at the data pertaining to inflation, largely as we discussed last week, things seem to be kind of moving in the right direction.
Once the CPI rolls over it, generally, it’s a pretty prolonged move as far as in this one seeming to be downward, which is again, what we’re looking for. A chart that I brought today, again, I think kind of reinforces some of this.
It’s looking at the producer price index. It ignores food, and we did that for a particular reason, because it’s so volatile, food is so volatile. This particular one ignores it.
Don’t get me wrong, it’s very important as far as in the analysis, but I think what we’re trying to do here is to illustrate to folks that, again, things are moving quite rapidly in the right direction.
So we’re seeing costs come down, not just a movement sideways, but actually things as far as moving down for a change.
Brandy Auterson-Hurst:
So tell us what can viewers take away from this as it relates to their investment accounts?
David Nelson:
So perhaps the largest positive impact of the falling prices, not just, again, things moving sideways is the Federal Reserve is probably going to be more inclined to probably not continue to increase interest rates. That in itself should be really good news as far as for people’s investments as far as looking forward.
Brandy Auterson-Hurst:
All right, David, as always, thanks for joining us.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com