Bill Ackman: How to Get RICH During Inflation (RARE New Interview)

Billionaire investor Bill Ackman just issued a warning about the future of inflation. But don’t worry, it’s not all bad news, and you will see why during this video. For background, Ackman recently gave a rare, full length, sit down interview. While this interview touched on a wide range of topics, it was Ackman’s comments around inflation that really caught my attention. You are going to want to hear what he had to say. In this video, we are going to cover Ackman’s thoughts on the economy, why inflation is here to stay, and arguably most importantly, how you can protect your money from the devastating impacts of high inflation. Let’s get into it.

In order to prevent the US from slipping into deflation, the US federal reserve established a target annual inflation rate of 2% in the year 2012. For much of the next 8 years, the Fed struggled to get inflation up to that 2% target. As a result, many economists believed that inflation would never again be a problem in the United States. Oh boy how things can change and they definitely changed in a major way in 2020.

To understand why Ackman thinks inflation is here to stay, you have to understand why inflation occurs. In simple terms, inflation happens when the demand for goods or services outstrips supply. While that may sound like a complicated concept, trust me, it’s actually very simple. Here, we have a supply and demand graph. This line here represents the demand for a particular good or service

In this example, let’s say we are talking about used cars. The demand line represents the number of people looking to purchase a used car, and importantly, how much those buyers are willing and able to pay. Here, we have the supply line. This supply line represents the number of used cars available to be purchased at any given time. The point at which our two lines here cross represents the price for that good or service. So in our example, the average price of a used vehicle.

In 2020 and 2021, the US government and Federal reserve took drastic steps to prevent a widespread economic collapse. This involved sending cash directly to households, boosting unemployment benefits, and pausing required payments on certain types of debt. At the same time that all of this cash was getting pumped into the economy, the Federal reserve slashed interest rates to historically low levels. These lower interest rates made it less expensive for people and businesses to borrow money to make purchases.

Going back to our example with used cars, these actions resulted in an increase in demand for used cars. People had more money in their bank accounts to be able to spend to make the purchase. Additionally, the lower rates made it less expensive to purchase a car using a loan. These factors led to an increase in demand, illustrated by our demand line here getting pushed to the right

At the same time, automotive manufacturers were suffering through supply chain issues that limited their ability to produce new cars. Since there were less new cars available, people held on to their current car longer, resulting in less supply of used vehicles available for sale. Less supply means our supply line gets pushed to the left. Notice how now the two lines cross at a much higher price pointy

[lawerencemiller]

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[Markscott]

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[MegatPage]

I received advice to diversify my portfolio among various assets, including stocks and bonds, as a means to protect my inherited $2.5 million portfolio. While I typically prefer buying and holding assets, this strategy doesn't seem suitable for the current market, which feels like a rollercoaster ride. Additionally, I'm concerned about the impact of inflation on my portfolio and my financial security in retirement.

[JosephReynolds]

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[smithlenn]

I used to think every investor lose out during recession, meanwhile some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some, and profit for others, it all starts from having the right mindset. That said, I've set asides $250k to invest for future, unfortunately I'm a complete noob.

[divyagulati]

Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. <It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[CharetteRose]

Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.

[EmiliaEnglerth]

Engaging in an individual option is fair but its performance level can’t generate high dividends. Diversification is the secret to optimal performance, that’s why I have my interest set on options based on projected growth and performance.

[MIchaelGuzman]

Inflation has eased from 9% to 3.7% due to the Federal Reserve's interest rate hikes, but it's still well above their 2% target.The Fed recently paused rate hikes for a few months. My $270k portfolio is made up of 35 percent of falling stocks impacted by the uncertain economy. Still chasing after precautions to guard against this, but stuck for what to do?

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[codeblue]

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[ClemenciaAuberry]

It’s important to choose stocks that are expected to hold up in inflationary environments, combat the negative effect of inflation. is it a good idea to diversify your portfolio across different asset classes. I have seen folks making up to $50k in a month during high inflation

[SharonD.Spiker]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly|

[lisajenkins]

I'm struggling in this market. Stocks that I have held for months and made profits from are not behaving the way I'm used to so I’m quite indecisive on how to tackle this market, any advice would be grateful.

[ElliotFelix]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions.

[Andreallln]

The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth

[Americancowboy]

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[skibumrx]

You cannot print this much money globally and not have prices go up. It’s really just simple economics. What’s funny is we are printing money to pay the higher interest on the higher debt which is being added to the debt. We are now in a negative loop.

[ExtremePlantGrowing]

Same guy that said the world was ending during the covid lockdown and hotels were finished while secretly buying up all the hotel stocks 🐍

[addahHusayn]

The 1% of rich Americans think of how to invest their money to increase their wealth during the recession. While the 99% of struggling hard-luck Americans think of how to survive without food and daily necessities in the recession and the coming hyperinflation