Inflation Is Doing Something It Hasn't Done Since 2009, and It Could Trigger a Big Move in the Stock Market in 2024
The primary measure of inflation is the Consumer Price Index (CPI), which represents the change in price for a basket of goods and services. The U.S. Federal Reserve has a mandate to keep inflation under control, and it targets a CPI increase of 2% each year.
But significant changes in inflation above or below the Fed's target can have a huge impact on asset prices, especially for stocks and housing. The CPI is on track for a steep deceleration in 2023 -- of a magnitude similar to 2009 and the early 1980s. The S&P 500 (SNPINDEX: ^GSPC) stock market index staged a huge move on both of those occasions, so here's what could happen in 2024.
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Source Fool.com
