Is higher inflation cause for concern?

Inflation rates have been rising all over the world, surprising many economists. While the rich world is paying higher prices for durable goods such as cars, in emerging markets soaring food prices are a greater worry. What is causing this unexpected bout of inflation, and will it last?

00:00 - What’s happening with inflation?
00:53 - What is inflation?
01:42 - Inflation rates are rising
02:47 - How much is too much inflation?
03:13 - Inflation in the rich world
05:19 - Inflation in emerging markets
06:04 - How to curb inflation
07:27 - Why you shouldn’t worry

[Redwood]

I just want my money to keep outgrowing the inflation rate. That’s why I'm looking for companies now to invest my $120k savings. Just don't know strategies to employ to make significant gains

[NicholasBall]

The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[BrainKeener]

Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.

[johnben]

A failing U.S. economy and elevated global tensions reduce the likelihood of prolonged inflation or higher long-term Treasury yields. I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich

[bernardallen]

Increased losses for portfolios this quarter are predicted by market drops, skyrocketing inflation, a major interest rate hike by the Fed, and rising treasury rates. How can I profit from the volatile market right now? I'm still considering whether to sell my million dollar bond and stock account.

[kevinmarten]

We read news in the media that doom and gloom is coming and we just accept it, doom and gloom doesn’t always have to be coming, I’ve read numerous success stories of people that are pulling off tremendous gains of up to $250K within weeks in this crazy market and I just want to learn how to achieve such figures.

[AlexisEE]

“Almost no one saw it coming” 🤣 these people think we are idiots

[falconJB]

Every economist seems to have spent this entire year talking about inflation, it didn't blindside anyone, everyone saw it coming.

[tradekings]

Collapse is generous
1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them.
Reckoning for participation trophies is incoming

[alexyoung]

Year-over-year inflation stood at 6.5% in December 2022—the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

[foodscience]

I lost all trust in the Economist when it said no one expected the inflation. Wow.

[reisman]

"Almost no one saw it coming" ...C'mon, The Economist. You know better than that

[johnlennon]

Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125, 000 ETF/Growth Stock portfolio.

[miawhitlock]

What if instead of talking about 9.1% inflation, the media acknowledged the true rate of inflation of about 18%? American workers are experiencing unprecedented declines in their real incomes, which is why record numbers have been forced to work multiple jobs to make ends meet. I wish I had more time for trial and error, but I'll be 56 in October and I need ideas and advice on what investments to make to set myself up for retirement, especially with the looming inflation and recession; my goal is to have a portfolio of at least $500k at the age of 60.

[alisonbrockbank]

Not sure I would agree that this inflation was unpredictable given the amount of money printing that has been going on in the last 18 months. Bizarre to suggest that it was a surprise.

[thomassmajstrla]

"The sharp increase in inflation blindsided many economists. Almost no one saw it coming"
Uh.... I've heard nonstop talk of inflation for like a year and a half now, since the stimulus packages last year. Anyone paying attention to the recent extraordinary economic events has seen it coming lol

[GoranIsmov]

The United States is grappling with the challenging combination of inflation and recession. An alarming aspect of this recession is the surge in consumer credit card debt. In April alone, credit card debt escalated by 20%, and rates have doubled within a year. Inflation has reached such heights that consumers are resorting to debt for essential life necessities. The signs of a collapse are evident, and the prospect of more layoffs looms. This is why I am considering entering the market now, anticipating a recovery in the economy. I am in the process of constructing a $600k portfolio. Do you have any recommendations for stocks in this scenario?

[Slaneshhhh]

No one saw it coming? They did so much QE and everyone was talking about inflation from the start...

[iscee]

I'm a truck driver and I knew inflation was coming.

[jamesdun]

I always like how these misleading narratives always omit housing, healthcare and education from their ‘inflation calculation’. It’s borderline propaganda. In the last 12 months my suburb avg price up 35%, pvt health 25% and fuel 25%… etc