.png)
Never Mind Rising Energy Prices, 'The Fed's Job Is Done,' Investor Says
After Friday's jobs report unsettled markets, investors are awaiting inflation data for September, due this week, to better gauge the Federal Reserve's next move.
So Monday's surge in energy prices due to the Israel-Hamas war looks ominous: If sustained, it could feed into quicker inflation for October and beyond. But not all investors are too concerned.
"The Fed's job is done," said James Demmert, chief investment officer of New York City-based Main Street Research, which manages roughly $2 billion in assets.
He added that energy makes up just 7% of the consumer price index, and is excluded from the so-called core readings that the Fed favors. Demmert said rising bond yields are doing the central bank's job by tightening financial conditions.
Read the full article here.
Disclosures: Main Street Research LLC (“MSR”) is an SEC registered investment adviser; however, this does not imply any level of skill or training, and no inference of such should be made. The opinions expressed herein are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. We provide historical content for transparency purposes only. All opinions are subject to change without notice and, due to changes in the market or economic conditions, may not necessarily come to pass. Mention of a security should not be considered a recommendation or solicitation to purchase or sell the security, and any securities mentioned may be held by MSR for client portfolios. The information posted represents an opinion as of the date published and should not be considered an investment recommendation. MSR does not become a fiduciary to any reader or other person or entity by the person’s use of or access to the material. The reader assumes the responsibility of evaluating the merits and risks associated with the use of any information or other content and for any decisions based on such content. Investment disclosure —neither the information nor any opinion expressed herein constitutes a solicitation by Main Street of the purchase or sale of any securities or other financial instruments nor a recommendation to hold, sell, buy, or own a particular security or sector in your portfolio and do not represent all securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in these securities has been or will be profitable. Individual recommendations are tailored to individual portfolios. Main Street client portfolios are managed separately and vary in regard to risk and return dependent upon individual client circumstances. A full list of all securities in the MSR client portfolio is available upon request.
