CPI Data – Inflation – What To Do

This morning had some interesting information released about CPI. The fact is, it’s higher than what we expected, and it seems like oil prices are partly to blame. With this news in the forefront today, I expect at least for the morning, the market to be red. Why? Because it means the Fed is not done with their job of controlling inflation.

What happens next? You will see several sectors, especially Retail along with Real Estate to be hit. I don’t know if the losses will continue into the afternoon, but I do think it will be a red morning. How far into the red? No one knows, it’s all about risk appetite.

I think another “Next Move” might come from the Fed, and may have to do with interest rates. They might increase interest rates further to help slow down that inflation. But do we worry? NO! Say it with me, “I will not worry!”

Why won’t we worry? Because there are plenty of other outlets that can take our money and make us a decent return during these times. I don’t recommend you liquidate anything, but any extra dry powder (cash) you might have, could go into TBills from the US Treasury.

Typically when interest rates hike from the Fed and stocks go down, the rates on US Treasury Bills, Bonds, and Notes increase. This means, keep an eye out for new rates today and snag some if you are able to.

I personally am looking at 4 week, 8 week, even 26 week TBills. Somewhere I can place my money, earn something on it, and not lose money like it would in a savings account.

You might be thinking, “Well, what about the Government Shutdown?” And you have a point, but do we think it will be shut down forever? I don’t think so, we have faced these moments before and survived, we will again.

So for us Thrifty Investors, who are always looking for the bargain or deal, we need to look other places than maybe the Stock Market. If you are wanting to be thrifty, try looking into the US Treasury and pick up some short term bills. You can also purchase US Treasury Bills, Bonds, and Notes from the investing application, Public.

Let me know how you choose to be Thrifty during these doom and gloom headlines!