Inflation has been increasing over the past year. It all began after restriction from COVID lockdowns began to loosen and in turn American consumers are spending more freely. Indeed the largest wave of inflation rose from pent-up consumer demand combined with trillions in stimulus spending has investors on edge as they expect prices to rise. On top of this we saw an impending market correction along with all of the COVID variants. Beyond all of this was the Feds could be rising interest rates as soon as 2023 – earlier than expected. With all of this, inflation is expected to rise to 3.4% this year, more than the Fed’s prior inflation forecast of 2.4%.
More recently, this inflation ramage has kept up – getting even worse in light of the Ukraine conflict and rising gas prices. Indeed, prices for everyday items has risen a massive 8.5% in just March of this year, the highest level since the Reagan administration. Not only does inflation hurt investors and participants in the economy, but it eats away at the value of capital and investments. Inflation It could also make future company profits less valuable today and lead to higher interest rates. So with all this awful news, you might be wondering how to combat inflation and continue to invest successfully. Well, although there is no magic trick sometimes looking at what other investors are going can provide a more holistic view of the markets and different investments. Above all, it is critical to invest your money and keep it moving in a positive direction against inflationionary pressures to minimize losses. What do you think about all this inflation? And will it slow down soon?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.