Inflation and Price Increases - What Will It Mean for You?

There is a major trend unfolding over the last few months that has caught our attention and is probably already affecting your finances.

Gasoline, food, lumber and overall inflation on many items that have been pretty stable over the last few years are starting to jump up quickly.

What will these rapid increases mean to you? Watch our latest video for our thoughts and guidance.

Video Transcript:

Greetings, from sunny Sarasota, Florida. We hope all is well with you and your loved ones.  

It's hard to believe they we're already halfway through 2021. At Generations Wealth Planning we closely watch the latest trends in the investment world and listen to the opinions of the country's top investment minds.
 
There is a major trend unfolding over the last few months that has caught our attention and is probably already affecting your finances.

We are now witnessing rapid increases in the costs of many items. Prices of items that have been pretty stable over the last few years are starting to jump up quickly. This chart shows inflation after several years of stable prices. Now prices across the board are moving up rapidly.

Food prices tell us a similar story. Gasoline prices are up about 45 percent in just the last six months. Wow!

Higher gasoline prices affect us not only as drivers but also raise the cost of any goods that we use that are shipped to us from around the country.

Inflation is generally bad for consumers, it's also a headwind for many businesses and for stocks and bonds in general.  

So, is this the start of a long-term trend of higher costs and economic headwinds? No one knows for sure yet but many of the price spikes such as lumber and gasoline already appear to be subsiding. 

We think the odds of runaway inflation are slim, prices will moderate soon we believe. Still, we are very cautious on stocks as stock prices now hover at very high valuations. 

Thanks for your confidence in us here at GWP and we look forward to talking to you soon.