S2 E25: What’s actually been driving inflation if the goods sector has been deflating since 2024?

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From used vehicles to housing, we dive into the related CPI trends and unpack the encouraging and cautious future insights they offer. Discover how the CPI is calculated, the latest interest-rate projections from the Federal Open Market Committee (FOMC), and the influence of interest rates on the housing market.

In this episode of Blue Chip NOW!, Chief Investment Officer, Daniel Dusina CFA®, Senior Advisor Matt Mondoux CFA®, CMT, CFP® are joined by special guest Vince Parrack, Investment Analyst at Blue Chip Partners, to dive into the current state of inflation and its various implications. Vince also tells us about the ins and outs of the Chartered Financial Analyst ® (CFA ®) program, within which he just sat for level 1. In our conversation, we discuss the fundamentals of inflation, the Consumer Price Index (CPI), and why the CPI is an important metric.

Vince shares his experience of completing the level 1 of the CFA ® Program and what it entails. Hear about the different topics covered in the program, details about the first exam, the overall pass rate, how many hours to study, and much more! Whether you're interested in inflation, its impacts, or the CFA ® program, this episode offers valuable insights and advice. Tune in now!

Key Points From This Episode:

(00:01:29) Overview of inflation and the Consumer Price Index (CPI). Check out the Consumer Price Index summary mentioned in the episode here ‘Consumer Price Index Summary’

(00:03:58) Key takeaways from the latest CPI trends and what is driving them.

(00:05:53) CPI trends in used cars and other vehicle-related costs.

(00:08:50) Explore the largest component of the CPI: shelter.

(00:10:48) The FOMC’s projections regarding interest rate cuts for 2024.

(00:12:05) Unpack the state of the housing market and how inflation impacts it.

(00:16:33) Learn about the CFA program and what it entails.

(00:18:23) Exam preparation guidelines and details on the different CFA levels.

(00:20:34) Benefits of preparing for and completing the level one program.

(00:23:03) Vince shares important considerations for prospective CFA candidates.

(00:24:19) Final takeaways and closing comments.

Quotes:

“Services continue to be the reason that inflation is up, essentially. Goods being in negative territory.” — Daniel Dusina [0:04:58]

“Until we can build enough supply to ease this in balance [in the housing market], it's tough to see what's going to get housing back to what we call normal levels.” — Matthew Mondoux [0:12:56]

“[The practical skill module] helps you learn how to apply what you learned in your daily work life. I believe that's going to be very beneficial.” — Vince Parrack [0:20:52]

"I'd say, if you're thinking about [the CFA program], definitely go for it. [It will] elevate yourself. It gives you a leg up and it really enhances your expertise and your knowledge [of] the investment industry.” — Vince Parrack [0:23:04]

Chartered Financial Analyst® is a registered trademark owned by CFA Institute.

Links Mentioned in Today’s Episode:

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