The Consumer Price Index (CPI) figures in the United States for December surprised the market, recording an increase of 3.4% year-on-yeartwo tenths more than anticipated and three tenths above the previous month, breaking the trend of deceleration in prices. This data will be key for the next interest rate meeting of the US Federal Reserve (Fed).
In monthly terms, the CPI rose 0.3%, exceeding expectations by one tenth and increasing two tenths compared to November. The core CPI, which excludes food and energy, experienced a year-on-year increase of 3.9% and a monthly increase of 0.3%, slightly above forecasts.
Thus, in the midst of local political uncertainty and inflation that is resisting in the US, Solid companies are presented as fundamental options to face short-term challengesas local actions are expected to be influenced by political decisions during 2024.
Furthermore, in the local market, investment in cedars (Argentine Certificates of Deposit) of foreign companies, as well as in exchange-traded funds (ETFs) such as SPY (S&P 500), QQQ (Nasdaq 100) and DIA (Dow Jones Industrial Average) is considered an alternative to reduce risks in variable income.
Although past returns do not guarantee future ones, over the past ten years, the DIA had an annualized return of 10.9%, the SPY 11.8%, and the QQQ 17.4%. These figures were 11.9%, 14.9% and 21%, respectively, in the last five years.
The choice between these indices will depend on theThe characteristics, objectives and individual needs of each investor, considering factors such as dividends, volatility and long-term growth prospects.
Cedears: keys to take into account when rebuilding your portfolio
As the economist explains well Elena Alonso in statements to AmbitIn the current context, it is crucial to carefully monitor the evolution of inflation and changes in interest rates, since these factors directly impact the performance of investments.
“Higher-than-expected inflation in the United States has generated a decrease in the yield of Treasury bonds, which favors stocks as they seek more attractive yields,” explains Alonso.
Regarding promising sectors for investment, the economist highlights the technology sector, with special attention to companies such as Microsoft, Nvidia and Cisco. He also mentions the energy sector, where Microsoft is presented as a prominent option.
Additionally, it suggests considering consumer discretionary actions, like Amazon, taking advantage of the economic recovery that allows people to purchase luxury goods. Finally, he underlines the importance of not overlooking the health sector, with companies such as Johnson and Pfizer.
Alonso recalls that when constructing a diversified portfolio, it is recommended to consider the potential strength of financial variables, especially in the face of falling interest rates. This diversified and sectoral approach can be an effective strategy to deal with current market conditions.
Cedears: the companies that the market follows
In a document shared with its clients, the financial advisor and ideal in the market Gaston Lentini recommends following these three cedars based on technical foundations and avoiding following “only technology companies”.
3M: For Lentini it is still a recommendation and he explains: “from US$108 three months ago it dropped to the 90 area and today it is around US$108 again. “Why wouldn’t I recommend the same company at the same price?” Knowing also that his main trial related to a massive lawsuit for malfunction of a product (earplugs) came to an end. It cost US$6 billion and as happened with YPF, Judgment is no longer a monster that we don’t know when it comes out. The monster disappeared.
VZ: This is an American telephone and communications company. The financial expert highlights that his income remains stable at around US$5,000 per quarter and the level of debt/capital involved is gradually reduced each quarter. Therefore, it is very attractive when diversifying or rearranging the portfolio.
DAY: A conservative ETF with 30 large North American companies. Lentini highlights that there may be an opportunity here to find some coverage, perhaps buying slowly in that area a set of mature companies with an annual dividend of 2.7%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
