Apple Concept

Inflation spiked. Who could have guessed with midterm elections coming up? Haha….Let the market pull back so the big boys can plant their seeds.

Haha….What a jump in inflation! It’s like they want to get inflation done with so just dump the data here so that inflation can start trending down onwards. Mid-term elections round the corner!

If elevated producer prices pass through to consumer inflation, yields and equity valuations could face renewed pressure. Investors will likely focus on subsequent inflation data, Federal Reserve guidance and Treasury-market movements to assess whether the rally can persist despite a more hawkish rate outlook.

PPI, another signal for the Federal Reserve to play the news. Rate to be up or Rate to be down, let the big player decide.

Like a tiny one, don't bother so much

Hot September PPI confirms pipeline inflation pressures, solidifying expectations for extended Fed hawkishness. While equities briefly absorbed the print alongside a yield pullback, rising rate expectations increase capital costs—favoring selective exposure to cash-generative balance sheets over yield-sensitive dividend payers or hyper-growth names vulnerable to multiple compression.

I am becoming more cautious about rate-sensitive stocks as producer prices come in hotter than expected. With the December hike probability climbing, I think market volatility could remain elevated, especially for high-valuation tech stocks and heavily leveraged companies. However, I would not rush to sell everything based on rate expectations alone.

For me, the key is to separate short-term market sentiment from long-term business fundamentals. I am still bullish on AI and semiconductors, but I want to see companies turn strong demand into sustainable earnings and cash flow. I would rather accumulate quality stocks gradually on pullbacks than chase rallies or make emotional decisions.

Singapore’s export numbers are encouraging, especially the strong growth in electronics. I am also keeping an eye on banks and S-REITs, but I will be selective with my entries. My approach remains the same: stay diversified, keep some cash ready, and let the market offer better opportunities instead of trying to predict every Fed move.

The US September PPI, released this week, rose 6.3% month-over-month, beating the expected 5.3%, and increased 1.3% year-over-year, surpassing the forecast of 0.5%. Citibank now anticipates a rate hike in December, while UBS forecasts a third hike in March.

Rising rate expectations may have already been priced in by the market too early.

The surge in Singapore's exports and resilient US market performance despite hot PPI numbers show strong underlying momentum. However, with rate hike expectations shifting for December, maintaining a balanced, risk-managed approach is key. Great breakdown of the macro trends.

After PPI figure, stock markets rebounded slightly. If you think is DCB then can secure some profit first. will still think overall will be weakness towards fed fomc and midterm election. monitor closely and have a plan.

Everything so hot maybe October hike is possible before December hike again.