Inflation Concerns Are Overblown. Buy the Dip in Growth Stocks Before a Summer Breakout!  | | Luke Lango | Ouch! That's what I was saying yesterday as Wall Street took a big hit on a red-hot inflation reading from the June CPI print. Specifically, the June CPI print showed that inflation rose at its highest annual rate last month in 13 years, as the U.S. economic recovery gained steam. Of particular concern, CPI rose 0.9% month-over-month in June – bucking the trend of a slowdown in monthly inflation rates. In May, CPI rose just 0.6%, versus a 0.8% gain in April. 
Obviously, this isn't great news – for the U.S. economy, the stock market, or hypergrowth stocks. And it should be no surprise that Wall Street saw a lot of red yesterday. But from where I sit, the CPI print doesn't look too scary. Here's the thing: When you break down the line items of the CPI print, the categories seeing huge increases in prices are being driven by temporary factors. Food prices rose 0.8% in June, versus a 0.4% gain in May. That's entirely because of supply chain disruptions related to meat, poultry, and soybeans. Those supply chain disruptions will not last. Energy prices ticked up 1.5%, versus no gain in May. This is because OPEC+ is having trouble reaching a deal, while consumers everywhere are exercising their pent-up demand to get out of their house and travel. But OPEC+ will reach a deal soon, and this pent-up demand to travel will get exhausted after the summer. Used car prices soared 10.5% in June. But that's entirely due to a shortage of new cars in the market – thanks to the semiconductor chip shortage – which is pushing demand into the used car market. We've already heard from multiple auto makers that this shortage is easing, and therefore, price pressures in the auto market should ease, too. Shelter prices rose 0.5% in June, versus a 0.3% gain in May. But, again, this is due to a lack of supply in the real estate market as no one built new homes or apartments during 2020. Homebuilding activity has reaccelerated in 2021, and a flood of new supply is coming to the market soon. In other words, when you look at the CPI print line-by-line, you start to see that today's red-hot price pressures are temporary. I'm not alone in this viewpoint. According to Jamie Coxx, managing partner at Harris Financial Group: "The headline CPI numbers have shock value, for sure; however, once you realize that a third of the increase is used car prices, the transitory picture becomes more clear." And Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, said: "Overall, [this is] a continuation of the pandemic-specific pockets of inflation…" These comments echo those of Federal Reserve Board Chair Jerome Powell, who said in a press conference last month: "What we're seeing now, we believe, is inflation in particular categories of goods and services that are being directly affected by this unique historical event that none of us have ever lived through before." Today's print corroborates Powell's claim. And that's important. Because at the end of the day, the only opinion that matters here is the Fed's opinion. If they continue to see inflation as being temporary, rates will remain low, and so will yields. Net net, I think the stock market's "knee-jerk" reaction to a red-hot CPI print yesterday is misplaced, and will prove to be both temporary and a buying opportunity. Over the next several months, the U.S. economic recovery will mature, and lose steam. Inflation pressures will subside. The Fed will stay on the sideline. Yields will stay stuck in a lower-for-longer situation. The reflation trade will unwind. Growth stocks will breakout. If you keep that "big picture" in mind and ignore the day-to-day noise, you're going to make a lot of money over the next few months. And the best way to take advantage of this opportunity is to subscribe to my ultra-exclusive research advisory, The Daily 10X Stock Report. For readers who are unaware, The Daily 10X Stock Report is a super-unique service where I do the unthinkable: Every single day the market is open, I give away one hypergrowth stock pick with the potential to soar 10X in value. These stocks are at the epicenter of the inflation narrative. As inflation expectations and concerns rise, these stocks get crushed – and when those fears fall, they soar. As such, I fully expect over the next few months for inflation expectations and fears to subside, and for the hypergrowth stocks I outline in The Daily 10X to breakout in a big way. The timing has truly never been better to sign up for this service which, by the way, has already scored nearly 100 triple-digit winners and 6 different 10X winners in just over a year. So… what’re you waiting for? Click here, and find out the best stocks to buy for the summer. Sincerely, 
Luke Lango
Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it. | 
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