6.33 PPI Crash: Unveiling Inflation's Future or Corporate Gouging? | Nucleus Investment Insights
Globally producer price indexes have turned down quite decisively. China is trying to deal with deflation.
\n\nThere are two main explanations, with diametrically diverging investment outcomes.\nUnder the first scenario, producer price inflation is a leading indicator for consumer price inflation. Falls in the producer price indexes will inevitably flow through to inflation indexes. Sell stocks, buy bonds.
\n\nUnder the second scenario, the gap is an indicator that companies continue to be able to expand margins. It is a sign that companies are raising prices to consumers faster than their own costs are growing. Buy stocks
\n\nJoin us in this week's podcast as Nucleus Wealth Chief Investment Officer Damien Klassen and Senior Financial Adviser Samuel Kerr dig into the arguments and look at the evidence.
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Agenda:
- \n
- What is the Producer Price Index \n
- Divergence or lag \n
- Two options: good for margins, terrible for margins \n
- Reporting season \n
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\nNucleus Wealth is an Australian Investment & Superannuation manager that can help you reach your financial goals through transparent, low-cost, ethically tailored portfolios. To find out more head to\xa0Nucleus Wealth Website.
\nThe information on this podcast contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Damien Klassen is an authorised representative of Nucleus Wealth Management. Nucleus Wealth is a business name of Nucleus Wealth Management Pty Ltd (ABN 54 614 386 266 ) and is a Corporate Authorised Representative of Nucleus Advice Pty Ltd - AFSL 515796