Inflation: Is it coming? If so, how do you invest?
Inflation, you hear more about it these days. Is it coming? Yes, but perhaps after a period of lower prices, called deflation. The large amount of debts created over the past 20 years is the near-term problem of deflation. But eventually, prices will rise, causing inflation. In some areas, we already have inflation, real estate prices.
1.) The Environment for Inflation
- What is the opportunity, and what helped created it?
- Central Bank ‘money printing’. Remember, the definition of inflation is too many dollars, chasing too few goods. We have the now.
- Demand for commodities exceeding supply. Think metals for electric vehicles, if nothing else.
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