inflation

In the realm of finance, adaptability is paramount, especially during periods of economic turbulence. As inflation rates surge and financial landscapes experience shifts, mastering the art of trading and investing becomes more critical than ever. In this article, we delve into a timely and crucial topic: "How to Trade and Invest in Periods of High Inflation." Inflation, a formidable force that can erode purchasing power and reshape economies, demands a strategic approach.

In the realm of economics, two distinct yet interconnected lenses offer insight into the complex dance of human choices, resource allocation, and market dynamics. These lenses, known as macroeconomics and microeconomics, provide unique vantage points for understanding the intricate workings of economies at different scales. As we embark on this comparative journey, we delve into the nuances of macroeconomics and microeconomics, uncovering their fundamental differences and exploring how each contributes to our comprehension of economic systems.

Key events:  Canada - Core Retail Sales (MoM) (Mar) USA - Fed Chair Powell Speaks Eurozone - ECB President Lagarde Speaks Continuing their upward momentum, US stocks closed higher for a second consecutive day on Thursday, fueled by growing optimism surrounding a potential US debt ceiling agreement anticipated to be reached in the coming days.

Key events:

Key events:        

Key events:         Switzerland - SNB Interest Rate Decision (Q1)     Switzerland - SNB Press Conference      Eurozone - EU Leaders Summit        UK - BoE Interest Rate Decision (Mar) UK - BoE MPC Meeting Minutes      USA - Building Permits   USA - Initial Jobless Claims USA - New Home Sales (Feb) Contrary to the recent problems in the U.S. banking system, the Federal Reserve did raise interest rates by 25 bps at its meeting last night.

Key events:         Australia – GDP (QoQ) (Q4) 0.5% UK – Manufacturing PMI (Feb)   UK – BoE Gov Bailey Speaks      USA – ISM Manufacturing PMI (Feb) USA – Crude Oil Inventories After a very favorable beginning of the year, with two consecutive months of gains, European markets performed surprisingly well amid a sharp rise in interest rates. In contrast, U.S. markets closed lower, giving up some of their January gains.

Key events:         UK – Retail Sales (MoM) (Jan) This week we saw a lot of important economic data updates for the market. The most important of them was data on inflation, both consumer and industrial. The picture, as it may seem at first sight, is rather bad for risky instruments, but the market is holding on, and in some places, it is even growing. So has the U.S. economy lost its influence on the stock market? New Economic Data On Tuesday we were presented with new data on consumer inflation.

Key events:       USA – ISM Manufacturing PMI (Dec)   USA – JOLTs Job Openings (Nov)   USA – FOMC Meeting Minutes The classic year-end reviews here and there reminded us of the exceptional nature of the past year: the Russian aggression in Ukraine, the energy and food price shock, serious problems in the labor market, inflation that exceeded the central banks' target rates several times, which led to a tightening of monetary policy on the "whatever it takes" principle, etc.

Fighting global inflation, now at its highest point in decades, has become a number one priority for major central banks around the world. Monetary policy measures that include raising rates are not yet having the desired effect – but it will take time. Nevertheless, there are serious concerns that even such all-powerful institutions as the U.S. Federal Reserve are "running out of ammunition," and there are fewer and fewer opportunities to influence the situation. The problem is that to support monetary policy the Fed needs to liquidate a giant overhang of U.S.