US inflation, as defined by headline CPI, is down to 4%. The smallest increase since March 2021. Consumer prices for food rose 6.7 percent for the year ended May 2023, while consumer prices for energy fell 11.7 percent, the largest decrease since June 2020.
This is one of the reasons the FOMC decided to pause US interest rate increases. What does this all portend? In a word, volatility. Investment stock markets, led by the S&P 500, have been on an upward trend year to date in 2023.
As good as 2023 has been, it’s important to make sure your investment portfolio is allocated to meet your comfort for risk and timeframe. One of the best ways to benefit from the market’s volatility is to invest systematically every month, or, as we call it in the business: Dollar cost averaging (DCA).
