Although food inflation continues to remain high (*1) and war in Eastern Europe has not ended (*2), the December 2022 U.S. CPI drop from 7.1% to 6.5% (*3, *4, *5), suggesting that the U.S. inflation is cooling down.
Given that the U.S. inflation may have cooled down, one may invest in high yield bonds, small cap stocks, consumer discretionary stocks or even collectibles in Q1 2023.
This is because with lower inflation, the interest rate may likely be lower too. ...