Happy Tuesday!

After a long break from moving, I’m back! Let’s jump in with recapping today’s CPI report:

Top line:

• Headline CPI: +0.2% m/m (vs. +0.3% in June) and +2.7% y/y (unchanged).

• Core CPI (ex-food & energy): +0.3% m/m (vs. +0.2%) and +3.1% y/y (up from 2.9%).

What moved it

• Shelter: +0.2% m/m; rent & OER +0.3% each. Still the main driver of the monthly gain. +3.7% y/y.

• Food: Flat m/m. Grocery −0.1%, eating out +0.3%. +2.9% y/y.

• Energy: −1.1% m/m with gasoline −2.2%. −1.6% y/y.

• Notables in services/goods: Airline fares +4.0% m/m, medical care +0.7%, used cars +0.5%; communication −0.3%, lodging away from home −1.0%.

Cash Pile Watchout

• Inflow: +$76.2B into U.S. money market funds last week, lifting assets to $7.15T. That’s a +1.08% week-over-week jump.

• Mix: Government MMFs +$67.5B; Prime MMFs +$7.9B; Tax-exempt +$0.8B. Government funds are doing the heavy lifting.

Why it moved: Tariff headlines + softer U.S. data pushed investors to park cash short-term.

Scale check : The cash pile is ~$7.1T—is near record territory and still huge relative to history. Think of it as “dry powder” that can swing sentiment if yields fall.

🌏 Tariff truce: 90 more days

The U.S. and China extended the tariff pause through Nov 10. That prevents rates from snapping higher near-term and cools the immediate inflation impulse into the holidays. Good for risk sentiment, not a peace treaty

My View: Tariffs haven’t even partially been accounted for in prices. Today’s report will mislead people into feeling overly secure. But in looking at money market cash flows, institutional investors are getting defensive. I’ve spoken with several retailers and distributors and they are being hit hard with cost increases. Most all of them have policies that cost increases must be submitted 90 days in advance. You do the math!

Thanks,

Brian

💡 Tip — Audit your broker’s cash sweep (2 minutes, real money)

Do this now: Compare your sweep rate (the default holding pen for idle cash) vs a government money market fund (MMF). Move idle cash if the spread is meaningful.

• Find your sweep APR on your statement/dashboard; firms must disclose options.

• MMFs aren’t FDIC-insured; bank sweeps are—different safety/structure. Know the trade-offs.

• For market context, see ICI’s weekly MMF stats and the FDIC’s national rate caps (what banks generally pay).

👍 This Week’s Video: HOLD FOREVER - Our Top 10 Picks. This is a collaboration with Eli from Dividendology and also Joseph Hogue from Let’s Talk Money. We provide our top 10 lists to hold for 25 years. I hope you enjoy it.

👍 Here’s the link to my portfolio. Keep in mind I share this for educational purposes. I am not giving any financial advice.

In Case You Missed It

My last version of this video 2 years ago, had an average return of 340%! I’m hoping for the same with this one.

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