Why Sticky Inflation Is a Structural Problem
https://youtu.be/wQnVhZY5TzU Inflation may not come down as quickly as many hope. In this market update, we discuss why government spending and the surge in money supply during COVID continue to keep upward pressure on prices. With these structural forces in play, investors should prepare for a stickier inflation environment — and consider how it may […]
3 Reasons Inflation Will Be Sticky
https://youtu.be/tEgRCUXgHCQ Inflation has fallen but will remain sticky. The energy transition, wages and global food policies will continue to cause inflation pressure. Thus, the Federal Reserve will have to keep rates higher for longer.
SVB & Future Inflation
https://youtu.be/7IA3TuPxV9M Silicon Valley Bank’s (SVB) failure was primarily caused by investing in longer-term securities at a time of rising interest rates. Because of the failure, the Federal Reserve’s balance sheet rose by $299 billion last week. If this trend continues at the Federal Reserve, this is bad news for inflation.
Higher for Longer: Inflation & Interest Rates
https://youtu.be/WjaF6t5XxlA Inflation and interest rates will be higher for longer. Copper, oil, and wages will cause inflation pressure over the next few years, which will make it difficult for the Federal Reserve to cut interest rates. Watch this market update to learn more.
What Will Cause Inflation To Remain High? Commodities & Wages
https://youtu.be/Mc7L_5zfyrY Last week’s release of an 8.6% year over year increase in the CPI shocked many on Wall Street. What causes inflation, will these factors persist, and how should you invest? In this market update we show why commodity prices (specifically natural gas) and wages have caused inflation. Why inflation may remain high. And how […]
Natural Gas Pointing to Higher Inflation
https://youtu.be/9s1yv2KcDwY From 2009 to 2020 fracking caused natural gas prices to decline which in turn caused deflation around the world. That trend is reversing today as natural gas prices in the European Union are rising and causing US natural gas prices to climb. As the United States ships increased amounts of natural gas to Europe, […]
Low CAPEX Spending = Higher Energy Prices
https://youtu.be/z7h11nLSvNg In this market update we show the cause and effect of capital expenditures (CAPEX) for energy companies and the price of oil. Since it takes time for CAPEX to bear fruit in the energy space, expect prices to remain high due to this recent lack of investment. Today we are seeing this in Europe. […]
Energy Costs = Inflation
https://youtu.be/ijLaes1lAJc Over the past 40 years, the rate of growth in inflation has fallen. A major reason for this disinflation was due to lower energy prices – especially natural gas. Today we are seeing a reversal in the cost of energy, which could lead to a pick up in inflation.
Inflation – Up, Up and Away!
https://youtu.be/NCMKL4Qp8HoThe inflation numbers released by the government last week shocked many, but not us. The Federal Reserve has grown the money supply faster than any time in our history. Prices of lumber (and most commodities we use daily) are up significantly over the past year. One well known commodity hasn’t participated. Listen to find out […]
What are U.S. Treasuries and the Dollar Saying About Inflation?
https://youtu.be/SI4vyepCvuA The yield on the 10-Year Treasury has doubled since August with a big spike the first week of 2021. Higher inflation expectations is the main reason for the rise in bond yields. In addition, the US Dollar has been in an uptrend since 2011 which has been broken over the past few weeks. A […]