Inflation’s impact on the stock market
Stocks can generally act as a buffer against the long-term impacts of inflation.
Real GDP growth in the third quarter wiped out the declines seen in the first half of the year, but there was little momentum from consumers heading into the fourth quarter. However, job gains remained solid in October and wages are still rising in a very tight labor market; factors that should prevent a sharp decline in consumer activity in the near term.
• Labor market continues to support growth (pg 4)
• Bounce back for markets, but can it last? (pg 5)
• A mixed outlook for the holiday shopping season (pg 6)