🎉 Inflation comes down

Good morning investors! Stocks took a breather yesterday with major indexes jumping slightly to bring joy thanks to a soft inflation report.

Today we cover:

• Inflation slows down

• Earnings (Adobe and American Eagle)

• More about the changing economy

📊 Economy and News 

Inflation Cools in February, Offering Some Relief Amid Tariff Concerns

Despite ongoing worries about tariffs and stock market volatility, the latest inflation report brought a bit of good news.

Consumer prices rose just 0.2% in February, lower than expected, easing fears of accelerating inflation. This puts the annual inflation rate at 2.8%, down from January’s 0.5% increase. Core CPI, which excludes food and energy, also climbed 0.2%, bringing the yearly increase to 3.1%.

Economists had predicted a slightly higher 0.3% increase, meaning inflation is rising more slowly than anticipated. Markets responded positively, with stock futures gaining and Treasury yields ticking up.

Here’s what went up:

• Shelter costs, which account for over a third of the CPI, rose 0.3% but at a slower pace than in January.

• Food and energy prices also saw modest 0.2% increases.

• Used car prices jumped 0.9%

• Egg prices soared 10.4%, contributing to a 58.8% rise over the past year.

Here’s what went down:

• Airline fares dropped 4%

Also, inflation-adjusted hourly wages inched up 0.1% for the month, bringing a 1.2% annual gain.

The Federal Reserve is expected to hold interest rates steady next week, and with inflation pressures easing, markets are hopeful for potential rate cuts later this year.

Global hits:

• Bank of Canada cuts rates to counter tariffs, will be cautious about future moves.

• India’s inflation rate dips to cooler-than-expected 3.61% in February, below central bank’s target. On the other hand, Brazil’s inflation rate climbs to 5.1% in February, further hikes expected.

• Euro jumps to five-month high on hopes for Ukraine ceasefire; Canadian dollar rebounds after Trump tariffs.

Changing opinions: Goldman Sachs lowers S&P 500 year-end target to 6,200. Similarly, U.S. recession risk at 40%, warns J.P. Morgan’s chief economist. Pimco thinks the risk stands at 35%.

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📈 Stocks

S&P 500 5,599.30 (+0.49%)
DJIA 41,350.93 (-0.20%)
NASDAQ 17,648.45 (+1.22%)
BRENT CRUDE 70.94 (-0.01%)
* Prices as of Mar 13th, 12:20 AM UTC

Adobe Beats Q1 Estimates but Offers Mixed Outlook; Stock Falls

Adobe (ADBE) topped analyst expectations for its fiscal Q1 but provided a mixed outlook for Q2, sending shares lower in extended trading.

The company reported adjusted earnings of $5.08 per share on $5.71 billion in revenue for the quarter ending Feb. 28, surpassing FactSet estimates of $4.97 per share and $5.66 billion in sales. Earnings rose 13% year over year, while revenue grew 10%, marking the sixth consecutive quarter of slowing or flat earnings growth.

For fiscal Q2, Adobe projects adjusted earnings of $4.98 per share on $5.8 billion in revenue, slightly below analyst expectations of $5 per share. The company reaffirmed full-year guidance, forecasting earnings of $20.35 per share on $23.43 billion in sales, modestly trailing Wall Street estimates of $20.39 per share on $23.49 billion in revenue.

American Eagle beats: American Eagle said shoppers are pulling back on spending as it issued mixed holiday-quarter results. The apparel retailer beat on the bottom line and posted comparable sales that came in better than expected.

💵 Personal Finance

Good Stress: The Investor’s Edge for Peak Performance

Stress is a constant in the high-pressure world of investing, often viewed as a liability that clouds judgment and erodes health. However, it comes with certain benefits as well.

Unlike chronic stress, which drives burnout and costly health issues, good stress—through practices like fasting, cold therapy, and calculated challenges—trains emotional regulation and fortifies the body and mind.

Here’s how investors can leverage good stress to gain a competitive edge.

A Day of Good Stress: Fueling Investor Success

Here's how Jeff Krasno, author of Good Stress: The Health Benefits of Doing Hard Things, introduces it in his routine:

• 6 a.m. Wake up early, hydrate, skip the phone: Kickstart the day with discipline, avoiding the dopamine traps of endless market alerts.

• 6:30 a.m. 20 minutes outdoors or SAD lamp with meditation: Boost serotonin and calm the mind for clear-headed portfolio analysis.

• 7:30 a.m. Heat (sauna) and cold (plunge/shower): Build physical resilience and mental toughness to handle market swings.

• 11 a.m. Nutrient-dense meal: Fuel sustained energy for midday trades, avoiding sugar crashes that dull focus.

• 11:30 a.m. Barefoot walk on grass: Ground yourself post-decision, reducing cortisol from high-stakes calls.

• 2 p.m. Phone-free nature walk: Recharge creativity and intuition—critical for spotting trends others miss.

• 5 p.m. Mixed exercise (aerobic, resistance, flexibility): Enhance endurance and stress tolerance for late-day volatility.

• 7 p.m. Intermittent fasting with light movement: Sharpen discipline and metabolic flexibility, mirroring the patience needed for long-term gains.

• 9 p.m. Unplug, journal, prep for sleep: Reflect on wins and losses, setting a rested mind for tomorrow’s trades.

• 10 p.m. Sleep: Lock in recovery to process data and execute with precision.

Krasno’s approach—“Ease into discomfort and find practices you’ll stick with”—mirrors the incremental grit required in finance.

Studies show that acute stressors improve cognitive function and emotional regulation, helping investors stay calm during downturns and decisive in bull runs. Cold therapy, for instance, reduces inflammation and boosts dopamine, countering the fatigue of 14-hour days. Fasting enhances focus by stabilizing blood sugar, while sleep optimization ensures rapid, accurate risk assessment.

In a field where 70% of traders report stress-related underperformance, good stress offers a low-cost, high-impact edge. It’s not just about surviving Wall Street’s chaos—it’s about thriving in it, turning pressure into profit.

💰 Be a Better Investor

Resources:

• Calculators

• Retirement Resources

• Dividends

• Make Money in Retirement

• Side Hustle Ideas

• Stock Deep Dives

• Investing 101 videos

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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