Inflation 2.0 coming ?

Today’s Daily Byte

A bit of volatility hit the market today. The market was down sharply in the first hour but recovered. The reason for the fall could be attributed to the RBI scare that happened this morning.

We will talk more about it in the video, but the reason could be anything. The market was looking for a fall, and usually, when markets are a bit overbought or stressed on one side, any single excuse can become the reason for a fall.

Reading Time : 4 Minutes

Inflation 2.0 coming ?

Today, let’s talk about inflation and how it’s influenced by global shipping freight costs. After the COVID-19 pandemic hit, from April 2020 onwards, shipping costs skyrocketed. They increased nearly seven to eight times their base rate of 100. Different shipping routes saw varying cost hikes. This surge lasted until January 2024, after which the costs dropped. But recently, in the past six months, we are witnessing another rise in freight costs.

While shipping costs may not seem important in our daily decisions, they are early indicators of inflation.. . . . .

Reading Time : 4 Minutes

Concentration Risk at Play

In recent times, the top five constituents of the S&P 500 have reached a significant milestone. These five companies now make up 28% of the total weight of the S&P 500. This means that out of 500 stocks, just five hold more than a quarter of the index’s total value. This level of concentration is unprecedented in the last five decades.

The market has never before seen such a high concentration in just a few companies. . . . . .

Reading Time : 2 Minutes