Investment strategy: Inflation is not going away; Here are 5 ETF hedges for your portfolio – TheStreet | Jewelry Dukan

This week’s August CPI print might not have been a worst case scenario for the markets, but it was pretty ugly. Investors have been waiting and hoping for a more dovish stance from the Fed since the beginning of this summer, but so far they haven’t gotten it. In fact, the Fed has firmly rejected this notion at every turn.

Because of this, the market was not prepared for this week’s inflation rate of 8.3%. Yes, it was lower than last month, but the street was expecting 8.1%. More hopeful investors were expecting a little under 8%. Missing the inflation report would have been one thing and likely led to a sell-off in shares. In this case, the gap between expectation and actual was much larger than normal. Hence, there is a BIG sell-off in stocks.

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