Somehow the $28,852,576.06 Man just doesn’t have the same ring to it, but that’s what it would be in 2014 with inflation.
Inflation is a real thing, even if it’s been incredibly low as of late. With quantitative easing and a zero interest rate policy by the Fed, it’s actually been unusually low and for a sustained time frame.
I think it’s reasonable to expect inflation in the future, whether that’s 2, 5, or 10 years.
There are some investments that are less interest rate and inflation sensitive than others, so keep that in mind when crafting a well diversified portfolio. If you have questions about your portfolio, I’m just a phone call away.
An inverted yield curve in the US has predicted 6 out of 7 worsening economic conditions in our country since 1970.
In China, we don’t have the same type of statistics because of their young open economy, but recently their yield curve has “inverted”.
I’m watching this and realizing it’s just another of many economic indicators out of China pointing towards a slower economy.
I really don’t want much (if any) exposure to the Chinese Stock Market.
This also has consequences to the whole global trade market as China is the 2nd largest economy right now. We truly are a global economy, and what affects China affects the US.
Stay tuned to my newsletters this year as the China story unfolds.
