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The inflation experience of the last few years has been unlike anything many investors have ever seen before. And it has impacted all of our lives in many different ways. In this episode we try to put all of it in context. We discuss the causes of inflation, the challenges of measuring and predicting it, how different asset classes perform during high inflation and how we look at high inflation from both a portfolio construction and financial planning perspective.
01:51 - Thinking back to how we looked at inflation in 2020 04:16 - What caused inflation to rise so rapidly? 06:47 - When it became clear inflation was a problem 10:14 - Inflation is personal 13:49 - Social security cost of living adjustments over time 18:10 - The challenge of measuring inflation 19:51 - The importance of inflation expectations relative to reality 21:21 - How the Federal Reserve measures inflation 22:36 - Why inflation statistics can be deceptive 28:50 - Falling inflation doesn't mean prices come back down 29:42 - How inflation impacts stocks 34:21 - How inflation affects bonds 35:11 - How inflation impacts gold and commodities 37:10 - Does inflation change the way we build investment strategies? 39:54 - How inflation impacts financial planning
ABOUT THE PODCAST Learning how to be a financial planner is one thing. Doing it is another. Follow along with new financial planners Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau) as experienced veteran Matt Zeigler (@cultishcreative) helps them navigate the complex world of financial planning and learn about the most important topics that impact all of our financial futures. From investments to retirement to college planning to estate planning to insurance and beyond, we will cover the major financial planning issues that impact all of our lives and will provide a framework to help investors tackle them. We hope you will join us on our learning journey.
