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Showing posts with the label Stock Market Noise

What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre
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Stock Market Noise: How to Stay on Track

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The stock market is filled with news and issues that change on a daily basis. But this information doesn't always help you invest. In fact, the noise can confuse your judgment and derail your long-term investment strategy. Noise in the stock market and its impact The daily barrage of economic news, data releases, and earnings announcements contribute to the noise in the stock market. For example, economic indicators like the U.S. Consumer Price Index (CPI) and the Federal Open Market Committee (FOMC) can have a big impact on the market right away, but their impact is limited in the long run. However, the moment you listen to the noise, you could lose sight of your original investment strategy. If you let the market's temporary fluctuations stop you from acting on your own plan, you're more likely to end up with big losses. Cut through the noise and walk your own path So how do you get away from all that market noise? The answer is to put on "earplugs," and I'm
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