Displaying items by tag: inflation

Millions of Americans are reliant on the social security payments as they shift into retirement, and while SSA boosted the amount in checks by 5.9% it pales in comparison to the record CPI numbers. The CPI climbed at a jaw-dropping 6.8% in November, which skims a healthy amount from the bottom line. Another large factor eating at people’s retirement social security is Medicare Part B premiums and are cost-of-living reducer. Medicare Part B premiums will subtract 29% percentage points from the Social security Take home over the next 30-years. Finally, retirees should be wary that their prescriptions are covered by Medicare because otherwise, they will be a hefty retirement expense.

FINSUM: It’s outrageous that social security and other retirement accounts aren’t keeping pace with the actual costs of retirees, and needs to factor into investment decisions.

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Dalio is quick to remind everyone to avoid holding cash as inflation eats away at holdings, but he also recently provided stocks for investors looking to hedge. The first on the list is Global Payments which has sound fundamentals and sequential quarterly revenue gains and is a bright spot in a growing industry. The next was Levi Strauss and Company which shrugged off naysayers who believed supply constraints and bottlenecks would keep them from meeting demand. Finally, was Lithia Motors which is a large automotive group. Supply constraints have boosted used car prices and the industry’s bottom lines.

FINSUM: These are all unique picks that have their built in inflation benefits, particularly the automotive industry.

Another post pandemic super bill is flowing through the economy this time with a Biden name tag, and the president claims the $1.2 trillion dollar stimulus will lower inflation. The idea is the new bill will lubricate the American supply chains and have goods flowing easier and thus lowering costs. It's difficult to say if this bill will un-kink the supply chains or just boost demand and prices even more. Americans are already worried about $4.50 gass and surging food prices. Inflation hit a 31 year record this month, and inflation expectations aren’t slowing according to the Michigan survey of consumer expectations. The median projection is 4.6% over the next year, up nearly 2% from a year ago. Additionally the Biden administration is planning on pushing the $1.75 trillion dollar Build Back Better in the upcoming weeks.

FINSUM: A stimulus bill would have to be hyper targeted at supply chains to have the effect Biden is aiming at, and in combination with the BBB these bills will only further the U.S.’s inflation problem.

Throughout 2021 one of the biggest worries for investors, business owners, and policy makers has been the return of inflation…see the full story on our partner’s site