Stock markets spent most of the week waiting for the US inflation reading which was released at lunchtime on Thursday, and inflation ‘hawks’ were not disappointed as the number came in higher than expected (more detail below) sending stocks lower. Inflation is the hot topic across the board currently. FactSet reports that approximately three quarters of S&P 500 companies have mention inflation in their earnings calls. However, as seen in the below numbers, overall, this isn’t hitting company profits just yet, with customers having to suffer higher prices rather than companies suffer lower margins.
Over the weekend I came across some interesting research about individual trading activity. 80% trading equities lose money, whilst those trading FX fare slightly ‘better’ with only 70% losing money. Interestingly, the top stocks bought on US trading platform Robinhood on average underperform the market by 9% over the following month. For those looking for love this week there may be better options out there.