Recently US announced that the inflation has risen to 7% in December. In this video, I’ll explain what’s inflation, what causes it, and whether this current inflation will continue going up or not. Finally, I’ll tell you how to prepare yourself for inflation.

►‌ ‌Get your free stock from Moomoo:

►‌ ‌Get your free stock from Tiger Brokers:

►‌ Buy Bitcoin with FTX to get 5% discount

►‌ Buy your Cryptos in Gemini:

►‌ ‌ Invest with MoneyOwl and get $20 GrabFood voucher:

►‌ ‌Sign up to crypto.com app with code “kelvinlearnsinvest”

►‌ ‌Sign up to crypto.com exchange

►‌ Buy your Cryptos in KuCoin:

►‌ Keep Bitcoin in Ledger securely

►‌ ‌Interactive Brokers for best commission rates:

►‌ Invest with StashAway:
‌
►‌ ‌Get a special 100% off Endowus fees, on top of $20 off:

►‌ Sign up to Syfe and get 3 months FREE with referral code: KELVIN

►‌ ErgoTune Chairs:
Quote “22+KLI” for a special discount of up to $30

►‌ EverDesk Tables:
Quote “22+KLI” for a special discount of up to $145

►‌ Discord chat:

0:00 – Intro

1:00 – What is inflation?
Inflation is just rate of increase in price. The common method of measuring inflation is by using Consumer Price Index (CPI). CPI measures a few things, eg food, housing, apparel, transportation etc.

2:55 – Inflation is actually good
A bit of inflation is actually a good thing, because it’s good for the economy. When consumers expect prices to increase, they will spend now, which will boost economic growth. Without inflation, people would spend less and the economy would become stagnant. That’s what happened to Japan.

3:45 – Too much inflation is bad
However, too much inflation is bad also, because it would cause recession. That’s why US aims to keep inflation low. They do that by controlling the interest rates. When interest rates are low, people will be able to borrow more money to spend, prices will go up faster causing inflation. Similarly when interest rates are high, deflation happens.

5:11 – What caused the inflation?
The root cause of the recent inflation is the pandemic.

1. High demand. Because people have been locked up for so long, they have also saved up alot of money. When the economy reopened, they spent more, leading to price increase.

2. Supply chain disruption. Due to lockdowns, there was lower consumer demand and reduced industrial activity. But when lockdowns ended, demand went back up. Manufacturers and distributors were unable to keep up with the demand due to reasons like worker shortages, lack of key components and raw materials. All these leads to increase in prices.

3. Labor costs. During the pandemic, the Great Resignation happened. Companies had lots of job openings but they were not able to hire enough people. So, to fix this, they had to raise the pay to attract employees. And the extra cost were passed down to consumers.

6:46 – Will inflation continue going up?
Many experts believe that inflation will continue remain high for a while, and the Feds will start increasing interest rates a few times this year, which will help to lower inflation.

7:24 – What you can do
You can start investing immediately. Invest in good stocks, Warren Buffett said that we should avoid any business with heavy capital investment. The companies that he meant are technology companies which give very high return on investment capital.

Also, take the opportunity to find a better paying job and gain new experience along the way.

*None of this is meant to be construed as investment advice, it’s for entertainment purposes only. Some of the links and other products that appear on this video are from companies which Kelvin Learns Investing will earn an affiliate commission or referral bonus.*…(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing