It’s CPI Day! Which is exciting, if you celebrate… Overall, economists are anticipating that CPI inflation rose 0.2% in August, according to FactSet’s consensus estimates. That would be in line with July’s 0.2% increase and would bring the annual inflation rate down to 2.6% from 2.9%. They expect core CPI inflation, which excludes food and energy prices, to increase 0.2% in August and 3.2% on an annual basis.

I don’t claim any greater insight than anyone else, but from the alternative data I have seen, it does look like the U.S. economy is experiencing a bout of deflation. This sounds like a return to normalcy, but it leaves many questions about the growth path, or whether will inflation return. Only rate cuts will be our guide.

A tool I have been using regarding inflation tracking/ price tracking is the Adobe Digital Price Index. Adobe is tracking the price of online products ranging from grocery delivery services, and subscriptions, to pet products. Its current reading is deflation across the board.

What’s going on in the pond?

Apollo and State Street make a push for private credit ETF:

Are private Asset ETFs viable? Apollo Global Management in tandem with State Street plan to make these products available to a wider pool of investors. A new private credit ETF is being constructed, according to a new filing on Tuesday (9/10).

State Street is joining firms like BlackRock and Invesco trying to make private assets more accessible to larger pools of investors. Private Credit has become a boon for investors in recent years as new participants join the space, this category of private funds has traditionally been reserved for instructional investors and insurance companies.

Apollo views this market as having greater liquidity and potentially ballooning to $40 Trillion, consisting of mostly investment-grade products. Apollo’s CEO, Marc Rowan, believes the success of these private credit ETFs can easily make way for commercial real estate debt, corporate loans, and residential mortgages, amongst other assets.

Current issues with these private asset ETFs include U.S. regulation around safeguarded liquidity. Open-ended funds may hold up to 15% of total fund holding in illiquid assets, this helps ensure redemptions can be met.

The new fund will need regulatory approval.

Read the Bloomberg PDF here:

Read the online version here:

• Check out the ETF Tools Page

• Check out the 100 Latest ETFs issued.

• Check out quantitative leveraged ETF trading at alphaAI

• Check out this Earings tracker Calendar. Find out who is reporting, and when… All in one place.

  • Deeper insight into this week’s earnings, here.

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Life is rich,

_{- Addison}

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.