The Cambridge Weekly – 14th November 2022

Signs of ‘peak inflation’ emboldens markets

There were three big market-moving stories last week: the US midterm elections, the latest crash in the surreal world of crypto currencies, and the release of US inflation data for October. By last Friday, it was the lower-than-expected inflation data that dominated in terms of market activity. Last Thursday’s report from the Bureau of Labor Statistics revealed annual consumer price index (CPI) inflation slowed to 7.7% in October, below the 8% expected by most economists, and the lowest level since January.

Republican ‘red wave’ ends up as merely a ripple

Americans went to the polls last week, for what some political commentators labelled the most important midterm elections in recent memory. Investors might feel differently – as direct market impacts are often small and hard to evaluate. The policy makeup of the world’s largest economy is nonetheless a crucial factor in any investment outlook. This is especially so given the current state of US and world economies – with rising interest rates, tight labour conditions and sky-high inflation. These factors are heavily impacted by fiscal and foreign policy, giving Washington’s lawmakers a key role.

This material has been written on behalf of Cambridge Investments Ltd and is for information purposes only and must not be considered as financial advice. We always recommend you seek financial advice before making any financial decision.


Past performance is not a guide to future performance.


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Source of financial market data: MorningstarDirect.