Good morning.

Inflation is back on the rise.

Meanwhile, we have artificial intelligence stocks absolutely going back up to the moon after taking a break for about one day. Meanwhile we got southwest airline stock absolutely crashing out of the sky and plummeting into the side of a mountain. Now I'm sure it's better on one of their planes doing so, but I'm sure a lot of share of holders would disagree with me on that. And of course it is time for short kings and small caps to unite. We're talking about the outperformance of small cap stocks we've been saying lately what this means for broading yours markets. Welcome to the DailyPales video stream for today, guys. My name is David from WSO. Hope everybody is doing well. Thank you all for joining us here today. Let's go ahead and get into the market snapshot here before we talk about any of the big news just yet. So WSO Alpha

portfolio, we've been doing pretty good lately, but yesterday we did underperform the S&P by a decent amount. Now put us back under the index for the year. I mean, you know, being the S&P 500, it really is too easy. So sometimes we've got to let them take a little bit of a lead. Or of 8.83% on the year the SMP is up 9.1 at 2%.

All good stuff to see. We were up 60 basis points yesterday. The SMP was up 1.12%. A little bit of a laggard, but hey, nothing we can cry about. NASDAG was up 1.5% yesterday, so drastically outperforming us on the day. We kind of use a quasi combination of the two for our benchmark here. So the important

thing is that we're underperforming both. Large reason for that was because Bitcoin and Ethereum,

which we do have exposure to in the WSO Alpha portfolio, we're somewhat underperformers on the day,

both underperforming the NASDAX return. Bitcoin was up 1% in the 24-hour period, whereas

Ethereum was up about 1.5% still seeing Bitcoin above 70,000 in Ethereum above 4,000, all stuff that we love to see. Great for your crypto balls out there as well. Let us know what other coins we should be looking at, where it can gamble my money and get the rug pulled out from under me. I kind of miss those days of 2020 and 2021. So let me know if you guys got any good rug polls you want to recommend. All right, but let's go ahead and move into the big story of the day, and that was, of course, CPI. The Rio of Labor Statistics on Tuesday dropped the latest CPI report for the month of February. What we did see was yet another uptick in monthly inflation. We go ahead and take a look here.

It's kind of like, you know, boomers out there watching this might remember the movie Beetlejuice. So when you go into that book, when he watched that movie, effectively what happened in Beetlejuice is if you say the word Beetlejuice three times, you reincarnate the ghost of Beetlejuice and he comes and just completely fucks up your day. It seems like we might have done that same thing by saying the word rate cuts.

We've said it a little bit too many times. Now inflation has started to creep back higher. We're starting to get a little bit nervous so we're going to see a repeat of the 1970s and 80s situation, but we're starting to defeat inflation and then it shot right back up and surpassed the previous peak. is the exact opposite of what what we want. J-Pal fancies themselves as modern-day Paul Volker, so I'm sure he's going to do everything in his power to prevent it, but that didn't stop February CPI from creeping up to 0.4%. That's coming off of a month of 0.3% in January, 2 months of 0.2% in November and December, and then 0.1%1% in October. So this is the highest we've seen since September of last year and confirms the strong uptick that we're seeing. But that really was the only scary part of the report. If we dive a little bit deeper, we can see exactly what's going on here. So the most important thing to look at is going to be core CPI. Now, we all know that J-Pow and the Federal Reserve, they strongly prefer the personal consumption expenditures index to the consumer price index.

And so the closest that we can get from the CPI to the PCE report is going to be through the core CPI.

This obviously it extracts energy and food costs from the overall reading.

And the most important metric of that is going to be the annual CoreCPI reading, which we did see continue to downtrend.

So we saw CoreCPI committed 3.8% for the year, also 0.4% for the month.

Although these were above expectations, by the way, as well, but only by about one basis point or about 0.1%. So it really wasn't a huge deal. Nobody was kind of freaking out too, too much, especially

because we did see core prices start to decline. Now, the scariest thing in this report,

and one of the main reasons that we started to see that uptake in monthly inflation was energy prices.

Over the past couple of months, energy prices along with

food have been doing the Lord's work by bringing CPI and overall inflation lower. That trend reversed

in February we saw gasoline prices start to tick back up. Overall energy prices were up 2.3%

and they, along with housing prices, contributed to about 60% of the total inflationary increase.

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