INFLATION, INFLATION, INFLATION

Hello and happy Monday, I’m Stewart, Heath CEO of Harvard Grace. 

The word of the day is inflation inflation inflation. Just on Friday, I was reading through the report from the bureau of economic analysis that you might see, on the above video, behind me on the screen, on the decrease in personal income in September, along with a slight increase in costs in CPI.

We’re in for a few bumpy months ahead of us. The experts keep telling us that inflation is transitory.

Don’t remember that word in my business school days. In other words, it’s temporary. We see CEOs from industry to industry, to industry, they’re not seeing any evidence that prices are actually going to come down. The reason that I don’t think prices are going to come down is because of wage inflation. In this report and the wall street journal article that I’m linking here in this post, wages are up to what they should be. When wages go up, prices need to go up as well. Plus there’ll be corresponding investments in technology to keep productivity up and spread out the labor costs across the industry. So, I don’t think that prices are going to come down. What we’re seeing right now is just a mess.

We’ve got a decline, a slight decline in personal income, which the experts in this report are really trying to play out of all of the stimulus money that has been pumped into the economy over the last year and a half. Most of that is now gone. It’s been spent and that’s really why income is coming down, but we are corresponding with fuel and energy inflation, which we’re seeing in every other sector of the economy.

This is going to be a bumpy ride, it’s time for you to start looking at your investments that have a hedge for inflation, such as real estate and gold, perhaps. I would love to hear your take on this report or any of my comments. Please engage with me here and let me know if you think I’m wrong.

We’d love to hear from you. Take care. Thanks for reading. Until next time!