Skip nav to main content.
×
cover-art
Pearl Hawaii Credit Union
Android GET - On the App Store
×
cover-art
Pearl Hawaii Credit Union
Apple GET - On the App Store

IS INFLATION PEAKING?

IS INFLATION PEAKING?

One lesser-known indicator is called the Baltic Dry Index

 

You see it in prices at the grocery store and the gas station. You feel it in your monthly budget. So why don’t the financial markets seem too concerned about inflation?

Remember, financial markets are considered “discounting mechanisms,” meaning they are looking six- to nine months into the future. And by June 2022, the financial markets expect that inflation will be lower than today.1

One lesser-known indicator that helps support that forecast is called the Baltic Dry Index. It measures the cost of transporting raw materials, such as coal and steel. The index has been trending lower for several weeks, which in the past has suggested that prices may be more manageable in the months ahead.2

No indicator is fool-proof. That’s why the Baltic Dry Index is just one of the many indicators that our professionals follow when watching inflation. They also keep a close eye on the Fed, which is responsible for controlling inflation.3

With the economy improving, the Federal Reserve has indicated it will be tapering bond purchases this month. That may help with inflation. The Fed also has prepared the markets for higher interest rates in 2022. That, too, may help.4

For now, it’s important to understand that Inflation can influence interest rates, which often play a role in how a portfolio is constructed. We’re keenly focused on what’s next for inflation to determine if any portfolio changes are appropriate in the future.

 


Investments

logo

Chris Kaminaka
Financial Advisor
Pearl Hawaii Wealth Advisors
Located at: Pearl Hawaii Federal Credit Union
94-449 Ukee Street, Waipahu, Hawaii 96797
Phone| 808.218.6268  Email| chris.kaminaka@LPL.com

Check the background of this investment professional on FINRA BrokerCheck.

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Pearl Hawaii Federal Credit Union and Pearl Hawaii Wealth Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Pearl Hawaii Wealth Advisors and may also be employees of Pearl Hawaii Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Pearl Hawaii Federal Credit Union or Pearl Hawaii Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

1d barcode

The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Your Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL’) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services.

Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.

 


IS INFLATION PEAKING? | DISCLAIMER

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering
legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance.

The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize.

Citations

1. Investopedia.com, 2021

2. CNBC.com, November 10, 2021

3. ClevelandFed.org, 2021

4. CNBC.com, November 3, 2021

 

OTHER PEARL HAWAII WEALTH ADVISORS BLOG ARTICLES