We Study Billionaires - The Investor’s Podcast Network TIP501: Investing During an Inflationary Environment
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Dec 6, 2022 Discover the primary drivers of inflation and how they shape investment strategies today. Explore performance trends of various asset classes during inflation, and understand why gold and cash-flowing real estate are solid protective options. Learn about Treasury Inflation-Protected Securities (TIPS) and insights from Warren Buffett on hedging against inflation. Delve into market analyses of Adobe and Microsoft, highlighting their resilience in challenging economic conditions, and consider the value of skill enhancement for navigating inflation successfully.
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Stagflationary Environment
- Stagflation combines high inflation with low economic growth.
- The US is experiencing this with high CPI and low GDP growth.
Drivers of Inflation
- Inflation is driven by increased money supply (monetary inflation) and rising commodity prices.
- Both factors, plus supply chain disruptions and geopolitical events, contribute to current inflation.
Historical Inflation Patterns
- The 1940s and 1970s saw high monetary and CPI inflation, similar to the current situation.
- Inflation fluctuated during those periods, with spikes every few years.
