• February’s Consumer Price Index (CPI) report showed inflation pressures eased in February, calming some fears about the health of the US economy during a rocky few weeks for the markets.
• The latest data from the Bureau of Labor Statistics showed that the CPI increased 2.8% over the prior year in February, below January’s 3% annual gain, and ahead of economist expectations of a 2.9% annual increase.
• The CPI report is unequivocally good news as slowing growth has a silver lining - it helps cool inflation.
• The level of the S&P 500 — down nearly 10% — offers a positive risk-reward trade off. Assuming no recession, 10–19% corrections are followed by double-digit rallies within three months, on average, with gains more than 80% of the time.
• The problem with potentially buying during the dip is twofold. First, we haven’t quite seen enough technical evidence of a washout, or indiscriminate selling.
• Second, we don’t have clarity on the biggest reason for the selloff, i.e., tariffs and trade uncertainty. That clarity may not come for a while which is what makes buying during the dip here tricky.
• We continue to preach patience and suggest waiting for more technical signs that the bottoming process is underway and additional clarity on where tariffs might eventually land.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. No strategy assures success or protects against loss.