The U.S. Consumer Price Index increased 7.7% year-over-year in October, which was the smallest increase since the beginning of 2022. The equity market responded with a greater than 800 point surge in the Dow Jones Index on October 12, 2022. However, one month of lower-than-expected inflation data doesn’t signal an equity market reversal and the near-term interest rate decisions from the U.S. Fed still remain unclear. Given the current backdrop, prudent investors should consider a diversified investment portfolio that will thrive in both volatile market conditions and through periods of recovery.