Aug 28, 2021

Cory Diary : Elevated Inflation is the New Normal



Staying Elevated

Not saying Super Inflation. Not Referring to Stagflation. Simply Inflation. Yes the new normal will be much higher inflation simply due to larger than normal amount of printed money this time round due to Covid-19. Some big shots say Transitory. This could possibly leaves room for interpretation on what it really means later. There is good possibility this can be no much further increase but it can stays elevated.


From above chart, coming back to 2.x range seems not easy without causing a recession. It may mute a little but it will be relatively elevated to support businesses profit.


Oil Price

Then we look at Oil Prices below. Is not much high and unlikely to be back to Mar'20 crash figures unless market really crash again. Maybe the Shale Oil will go away which seems not likely else inflation will speed up further. They will keep OPEC in-check for next few years at least.


Regulator will be in tight spot. They can't raise the rate meaningfully even if there is as this will be counter-intuitive to businesses emerging out from Covid-19.


Reality

The Market may need to accept the reality that higher inflation for some time to come and this mean savers will be in trouble. And this is probably the better option than others.

Staying Vested in the Market is way to go as we ride through the waves.



Cory
2021-0828

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Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.
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5 comments:

  1. AnonymousAug 28, 2021, 7:53:00 PM

    Do you accept annual salary decrement? Does your boss charge customers less & less each year?

    Prices for everyday things like your cai png will be sticky & stay the same even during recession. Once prices are raised, they stay.

    Only assets like homes or big ticket items like cars will fluctuate up & down due to inflation or deflation.

    For the normal everyday things, probably 3% inflation for the next 2-3 years.

    Anyway healthcare inflation has been in the high singe digits for the past 20 years already -- GFC crash, oil crash, China crash, Covid crash also no effect.

    My private shield plan premiums have gone up the past consecutive 3 years at almost 30% per year.

    ReplyDelete
    Replies
    1. CoryAug 29, 2021, 1:00:00 AM

      Yes, Inflation is always there to keep things moving. If we are to plot the property trend, is also on uptrend for the past 45 years. Healthcare inflation indeed a mystery. Could be driven out from US ?

      We can't solve it but we can manage our finances.




      Delete
  2. cbdAug 31, 2021, 10:46:00 AM

    TINA - got no choice but to stay invested though we manage our risks according to our appetite lor.

    ReplyDelete
    Replies
    1. CorySep 1, 2021, 12:03:00 AM

      Yes. I treat stock as part shareholder of the business. And structure them to my liking in my portfolio.

      Delete
  3. ^_^Sep 4, 2021, 12:26:00 AM

    Dear Investingnote folks,

    I have not been on investingnote for half a year, yet my friends continue to alert me on the negative posts on me...
    May I know why do you guys keep hating me and keep attacking me?
    I no longer post on that platform, I have moved on
    Now I am only sharing with my readers and followers on my substack.. I no longer have anything to do with investingnote
    If you disagree or dislike my views then do not read them, do not come to my substack... simply just remove me from your world and grow up
    I have moved on and I hope you guys can move on too
    Take care all and Stay healthy

    ML

    ReplyDelete

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