Market Movements - US Inflation

US inflation was reported today at 3.1%, a decrease from 3.4% in December, yet notably above the anticipated 2.9%. Consequently, both the Nasdaq and FTSE experienced significant declines.

For the full information see https://www.ft.com/content/368c3193-043c-4fef-95a5-751bce4e0699

Chart – 1 Day - Nasdaq

They have since slightly retracted their position.

I strongly disagree with these immediate reactions in the market to minor inflation data. I do not think the predictions can currently judge to within a 0.2% movement. In general, inflation is on a downward trend, albeit not so rapidly. Whether the rate reduction occurs on March 20th or May 1st (the subsequent Federal Reserve date) does not alter my stance on my portfolio.

Should there be further declines tomorrow, I may consider short-term trades to capitalize on temporary market movements.

Here are some companies I'm considering for this trade:

Crest Nicholson Holdings

Great Portland Estates

LGI Homes

Taylor Wimpey

Warehouse REIT