A little bit of good news here as headline inflation comes in up 3/10 on the month. The forecast was for 4/10 and core comes in up just 2/10 of a percent. Forecast was for 3/10.We're still at 3%. So instead of 3.1%, as was forecast for both numbers, we get a 3% handle for both headline and core in terms of where we are for the total month here. We're going to have to check out the overall numbers here.But let me give you a few before we check the markets. Food prices and this has been something that people ...

Underlying US inflation rose as expected in August, keeping the Federal Reserve on track to cut interest rates next week. https://t.co/2Mz4mulRaj ...

Market Structure & Investment Strategies - Public markets power the narrative, while private markets power the economy, prompting a re-evaluation of traditional 60/40 portfolios and the tools needed for better outcomes with less volatility [1] - Alternatives have historically benefited institutions, and there's a growing need to augment past strategies to cater to retirees globally [2] - The role of private capital is evolving as companies like Space X and Stripe stay private longer [2] - The distinction between public and private markets is shifting from risk to liquidity [5] - The traditional view of private markets as risky and volatile, and public markets as safe and liquid, is no longer accurate [6] Capital Expenditure (CapEx) & Financing - The high yield market has financed companies undergoing regulatory or technological changes over the past 30 years [9] - A massive CapEx boom is expected in the next ten years (by 2035), driven by data centers, sustainability, energy transition, and transmission lines [10] - 80-90% of the private credit market involves investment-grade counterparties and debt [11] - Private credit, particularly investment grade, is poised to have a significant impact, potentially larger than private equity in the last decade [14] - The CapEx cycle is concentrated in a few data and technology companies, raising questions about whether it masks the underlying economy driven by private companies [19] Economic Outlook & Inflation - Public market numbers beat consensus by 700 basis points (7%) in the second quarter, showing 11% versus 4% [20] - Credit portfolios show quality upgrades at a 3 to 1 ratio versus downgrades, indicating no widespread weakness [21] - Lingering inflation is evident, with companies finding it challenging to pass costs on to consumers [21][22][23] Investment Risks & Opportunities - There's a risk of over-investing in certain sectors, potentially leading to a misallocation of resources [24][25] - Investors should be wary of taking equity risk for a fixed rate of return, which could indicate a bubble [26] - The energy supply issue could limit growth, posing a challenge [29] - The lack of long-term investors is a concern for 10, 20, and 30-year infrastructure builds [30] Portfolio Allocation & Global Investment - Allocating 10-20% of a portfolio to alternatives has historically increased returns and reduced volatility [34] - The US remains the strongest, largest, and deepest market globally, with a robust economy, rule of law, banking system, creativity, and intellectual capital [47][48] - There's increased hedging of investments from overseas investors due to policy uncertainty and concerns about the Fed allowing inflation to run hot [41] - Europe's progress in energy transition and infrastructure development is slower than desired due to government oversight [42][43]

Underlying US inflation rose in June by less than expected for a fifth month, dragged down especially by car prices https://t.co/GMQ5U85O7n ...