Inflation – Compounding is a killer – costs are up 20% since 2020

“Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” – Warren Buffett

Don’t forget to Like this video and SUBSCRIBE for weekly stock reviews!

🎧 Rational Investing Podcast

📄 Free 1 Pager
Sign up here 👉

Remember to check my website 👇

🛍️ Merch store:

📚 10 years of historical financials + a Cash Flow 1 pager!!
Download here 👉

🧐 Learn to Invest on your own:
🧐 Cash Flow Investing Club:

Business Inquires: cashflowinvestingpro@gmail.com

— Disclosure —

Read Full Disclosure Here:

All opinions expressed by Cameron Stewart at Rational Investing with Cameron Stewart, CFA or on Cashflowinvestingpro.com are solely Mr. Stewart’s opinions. You should not treat any opinion expressed by Mr. Stewart as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Stewart’s statements and opinions are subject to change without notice. Past performance is not indicative of future results. Mr. Stewart does not guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this show. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this show may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this show. Before acting on information on this show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

#inflation2023 #stockmarket #stockanalysis #stockmarket2023 #stockmarketcrash #rationalivesting #investingforbeginners #recession2023 #stockmarketforbeginners #stocks #dividendstocks…(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

Inflation – Compounding is a killer: Costs are up 20% since 2020

Inflation is a term that we often hear in financial circles, but do we truly understand its impact on our everyday lives? Inflation refers to the increase in prices of goods and services over time, resulting in the erosion of purchasing power. It is a silent thief that steadily diminishes the value of our hard-earned money, and if left unchecked, can have detrimental effects on our economy.

Recent data suggests that inflation has been on the rise since 2020, with costs soaring by a staggering 20%. This surge in prices has placed an enormous burden on the average consumer, making it more difficult for them to make ends meet. The compounding effect of inflation means that the higher prices we pay now also influence the prices of goods and services down the line. Thus, the impact of inflation is far-reaching and lasts longer than just the initial price hike.

One of the significant contributors to the recent surge in inflation is the rising cost of raw materials, such as oil and metals. These essential resources are used in the production of various goods and, when their prices skyrocket, businesses inevitably pass on the additional costs to consumers. This results in higher prices for essential items like gasoline, food, and housing, which directly impact households and leave consumers with less disposable income.

Another factor driving inflation is the increase in wages as demand for labor rises. While higher wages might seem like a positive development, they often lead to an increase in the cost of goods and services. Companies tend to compensate for the increased labor costs by raising prices, which further intensifies the cycle of inflation.

Inflation is particularly concerning for low-income families and individuals who struggle to make ends meet in the first place. When the price of everyday essentials surges, such as groceries or utilities, it can push already vulnerable families into even greater financial hardship. The impact of inflation is not limited to basic necessities, as it also affects education, healthcare, and other essential services, making them more difficult to afford for ordinary consumers.

Moreover, inflation erodes the value of savings and investments over time. The interest rates offered by banks may not keep pace with inflation, meaning that the real value of money saved diminishes over time. Investors also face challenges as they try to preserve their wealth as the cost of maintaining real estate properties, bonds, or stocks increases with inflation. Thus, inflation has far-reaching implications that negatively impact both individuals and the broader economy.

So, what can be done to tackle rising inflation? Central banks play a crucial role in managing inflation by implementing monetary policies that aim to stabilize prices. These policies include adjusting interest rates, managing the money supply, and monitoring inflation expectations. The government also has a role to play by adopting fiscal policies that encourage economic growth while ensuring inflation remains in check.

Moreover, individuals can take some measures to mitigate the effects of inflation on their personal finances. This includes setting aside a portion of their income for savings or investments that offer higher returns than inflation. Diversifying investments to include assets that tend to perform well during inflationary periods, such as real estate or commodities, can also be a prudent strategy.

In conclusion, inflation is a significant concern that affects our daily lives and hampers economic growth. The recent surge in prices, with costs up 20% since 2020, has put a considerable burden on consumers. The compounding effect of inflation amplifies the problem, making it essential for both individuals and policymakers to be proactive in implementing strategies to manage inflation effectively. By understanding the causes and consequences of inflation and taking appropriate action, we can navigate through these challenging times and protect our financial well-being.