The US headline inflation rate is still coming down from high levels, having come in at 7.1% for November, and is in a clearly falling trend. This is evident also from the Month-over-Month number, which remains low at 0.1%. This has led to easier communication from the Fed for smaller rate hikes (not to be confused with a "Fed pivot", which requires rate cuts). But, the "higher for longer" narrative emphasized in the December FOMC meeting press conference was a wet blanket for equity markets.
Another part of the inflation story, which must not be forgotten, is the relationship between cost of living versus the development of wages. See the chart below, which depicts this difference since the autumn of 2020, which clearly shows that the average American has in real terms become poorer, as the wages have not kept up with costs. Additionally, that gap is widening, which can be a contributor to a coming recession, as a salary does not buy as much goods, after utility bills, interest on mortgages, and food.
As for my All Seasons Portfolios' performance in November 2022, this was finally a good month with gains of more than 5%, after a rather difficult 2022 YTD. Check out this monthly portfolio update post to learn more about it, and where we are in the macroeconomic cycle.