It’s no secret that Inflation is top of mind for investors right now. As prices for housing, lumber, copper, steel, and countless other commodities and goods increase at the fastest rate in years, it is natural for an investor to wonder about how inflation can impact the stock market and the economy. This raised two very important questions for me that I needed to learn more about: #1: how will inflation affect the future returns of the stock market, and #2: how will inflation impact the stocks that I own within my portfolio? To learn more about this, I turned to a pair of investors that have lived through countless economic cycles and periods of elevated inflation: the legends themselves, Warren Buffett and Charlie Munger.
Now let’s take a look at these two clips of Warren Buffett and Charlie Munger in 2003 and 2019 explaining how inflation impacts the stock market as they are just as relevant now than ever before. Make sure to like this video and subscribe to the channel if you aren’t already because my goal is to help you learn about investing and the stock market by studying the world’s greatest investors. Enjoy the video!…(read more)
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We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
To be honest, I would quit the video at beginning if it wasn't for the warren buffett count down. Its actually nice.
just buy bitcoin, simple
I'm just going by what the experts have told me over the last 6 months you know I'm taking a look at all kinds of all the figures over the last 6 months being on YouTube this is what their point blank telling me straight out verbatim this is what they're telling me it's going to happen I believe it I mean this is too many people are telling me it's going to happen I mean it's it's not it's going to happen but you've got to be cautious I mean you got a major event possibility in August that's just you have to be
Warren Buffett will be sitting in some apple and some Coca-Cola stock so sell off everything and the rest of being cash in the sidelines it's a big bubble it's bigger than it's ever been before but don't pop in August then you're probably going to be in Clearwater because then we won't know when it will pop but something that size you don't want to pop this is a trifecta it's sort of like a tornado that's five states across this ain't a little one we borrowed more money than ever before in history this is a five tornado Trifecta going across five states but it doesn't necessarily have to pop but if it does you're thinking it's going to do it in August after the five rate hikes every time they do a rate hike it's like putting a pin in a big hanging balloon and you just pray to God it don't pop if they can get behind the right you know the inflation behind the curve then it won't pop but if they pop that sucker prick it and it goes off you don't you're caught in that you're going to be Berkshire Hathaway will be in half overnight and it will be a falling one until it hits the floor and settlement so you got quite a ways down you can see it right now in the graph you got about a 70% drop because right now even though the market seems low over 78% of stocks across the boards are overvalued so it knows we've had one of the biggest bull runs and now we're going to take what goes up must come down because all markets have to go up and down that's the way it works like a roller coaster you don't want to panic but you don't you want to be in defensive stocks going down apple and Coca-Cola are not much affected by that downturn but certain stocks are hammered and we don't know the recovery if we if it is not a good recovery we could land into a session if not it could be devaluation okay we don't know whether we could run into hyperinflation no one knows we just have to see how it goes if it does not pop it's business as usual probably at the bottom so it'll start buying some Tesla and different stocks coming back up some apple Tesla Facebook going back up for the first next five years dollar cost averaging to see how it goes you don't want to go all in at once put all your eggs in one basket then you got exposure have the exposure can wipe you out man because sometimes it's 20 years after the stock market crashes to recover that was twice sometimes it's 7 years sometimes it's 5 years sometimes it's two years one times it was 6 months sometimes it's in a few weeks no one knows recoveries you've got crashes and you've got super crashes then you got the depression at 29 so they're not comparable every 7 to 9 years we get a major Southern we're talking possible major here not a minor but a major quick bubble quick this is a mega quick you know what's really going to get hit hardest is a Bitcoin absolutely obliterated and gold just doesn't seem to do well at all either real estate will plummet and so with that coming back up it'll be stocks will be the best bet to buy good stocks at that bottom will be the electric you know stocks will be where most the money is to be made and the riding that back up to next five six years or more is going to be just a gold
The price of lumber and housing we're in real estate meltdown it's the opposite people are losing big bucks Southern California those houses are in half guys sold a house for 50 million who's 100 million just a couple months ago that's a 50% discount the big houses are not selling now the big hundred million 200 million package houses goes from the top and it goes to the bottom goes from Southern California it goes across the United States this is a meltdown of the real estate market and you've got the all the rate hikes inflation is not good for the stock market and you got the inverted deal curve so it's face and you got a over and valued stocks all the way across the board even though we're down 70% that's nothing there's still over value not see it so we got some quite a ways to go down the bottom is not here yet in August it'll be down coming in July right when my license plates turn the first when they're due that's the day that you start buying Tesla at the bottom Tessa will lead the way to the top of the market at that point those who follow Tesla at that point will be some of the richest men in the world this guy is about ready to reach the highest point of production at this point but you don't want to get caught early if you do you lose probably 100 million you got the time this right because if you ride it down a bear market at the top then you've got a
So he said asset heavy industries like utility will not do well under inflationary environment, then went on saying the utility business they own is good, and everyone needs railroad. Then what is it? Can someone shine some light?
Money is not wealth. Money is a convenience to barter exchanges of differing unit value. A too small amount of money in circulation limits the exchange of the goods and services, products that support life. Equitable trade is dependent on the healthy balance between the volume of products in circulation and the volume of money in circulation. Buyers and sellers trade/barter (agree on value equality) to determine product value. Excessive currency volume in circulation inflates prices but does not change comparative intrinsic value. But it does confuse those who view money as wealth. Thieving leaders thrive on many people’s mistaken concept that those leaders have their supporter’s wellbeing as a priority when they distribute or take dollars. Wealth is the ability to produce products that support life. Developing a product's value increases product wealth. While some think that because they handle more money or debt they have wealth. Some of the self-appointed elite ruling class skim from financial advantages earned by those who do create product value. Government overreach continues to deteriorate the prosperity of those who actually work adding value to useful products. Remember the Creator is in control and not these demons. Activities that are in harmony with the Creator’s principals support a wealthy life.
Inflation makes my brk.b and unp stronger hmmm….
As Warren and Charlie near the end of their life cycle,
perhaps Capitalism is getting old and tired?
How far can you distribute Fiat Dollars
among the Citizens,
while continuing to provide profits
to the Greedy Investor?
This concept was demonstrated in 1929…..
How dare me click into this think I can understand even a bit
Not inflation it's the private debt load
So what does this mean? If I hold penny stocks and already making decent profits, should I sell all and wait for it to crash cause of inflation? Or it can still increase in-spite of inflation?
Warren, munger : (what the… What a dumbest question…)
I always listen to Warren and Munger, even if I disagree with what they say. I'm an investor, not a fool.
But we face something unprecedented and the approach should reflect that. So I don't bet against the fed but do my homework so that I better understand where they are coming from and how I should react.
We have a grain shortage, full stop. General Mills has trouble getting grain and pay a higher price. Farmers have trouble getting feed (grain) for their livestock. Can't afford the feed, cut the amount of livestock raised. Fewer livestock, less meat, etc… (speaking with investors you see where I'm headed)
I am an investor but I also like to cook. My wife came in and said, "I brought you something that I think you will enjoy". So I walked to the kitchen and she handed me a bag. I opened it up and there were three fresh ears of corn on the cob still in the husk. I pulled one out of the bag and gave it a big kiss.
Of course my wife looked at me funny and said, "I could have probably gotten some frozen a month ago if you missed it that bad". I asked, "How much did you pay for those three huge ears of corn?" She replied 30 cents each. My smile grew. She asked why?
I told her that I was glad she brought the corn and would cook it. But the fact she was able to buy it and cheap means the grain supply is coming back. That means farmers will be able to buy feed, companies like General mills will get the grain they need at reasonable prices. This will off set the inflation because supply will meet demand.
Her reply, "Do you always have to think like a d*mn investor"?
Actually, the saas business are great!
Thank you for consolidating into one video
Inflation will make people buy more stocks, real estates or other things because of fear of cash losing value. However the things they buy will become quickly overpriced. This can trigger high volatility and large corrections on the market imo.
People will tend to buy things they consider will have good outlook or companies that will do great even some that will take advantage of the situation but the more people buying that the more overpriced they will become, imo. The companies may in fact do great but the stock price will still make ample variations up and down.
Also a 3-4% inflation is ideal or maybe 2 by today’s standards . A deflation is not good, it triggers disturbances on economy
You can’t be normal , so do everything that makes you not normal
We're at the end of a long bull market. I will enjoy seeing this ponzi margin debt market come down.
One thing that Buffett was proven wrong on was the low inflation environment would give nominal returns. That has not been the case for the last decade or so. We've had almost a deflationary environment and had the s&p return close to 15% annually. However still agree with his points.