Why Higher Inflation and Interest Rates are Potentially Beneficial - A Bullish Perspective

Yankee legend Yogi Berra famously said, “It’s deja vu all over again,” one of his many memorable expressions. That’s the way I feel this week. The “deja vu all over again” is the theme of “Don’t fight the Fed.” The Federal Reserve's recent pivot from inflation promoter to inflation fighter puts that adage front and center in the current debate between the bulls and the bears. This week’s guest has been following that dictum during his 40-year investment career. He has been bullish since the Fed opened the monetary spigots in 2009. He is Ed Yardeni, a Ph.D. economist, long-time Fed watcher, and investment strategist who is widely followed by institutional investors. He is also the author of several books. The latest, In Praise of Profits! is dedicated to progressives to help them understand that “profits isn’t a four-letter word.” Another Yardeni book is Fed Watching for Fun and Profit: a Primer for Investors, which we discussed in-depth in an earlier interview. In that book, he wrote: “To do this job well, I've learned that nothing is more important than to anticipate the actions of the Federal Reserve system’s Federal Open Market Committee (FOMC) which sets the course for monetary policy in the United States.” Given the Fed’s change of policy from easing to tightening I asked Yardeni if he was becoming less bullish. 00:00 Hello 00:36 Introduction 02:29 Interview with Ed Yardeni 23:21 One Investment 24:10 Action Point WEALTHTRACK Episode #1833 broadcast on February 11, 2022 More Info: Bookshelf: Fed Watching for Fun & Profit: A Primer for Investors In Praise of Profits! Martin Zweig’s Winning on Wall Street #bullmarket #interestrates #inflation...(read more)

---

LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing

---

Inflation and interest rates are two of the most closely watched economic indicators. Inflation is a measure of the rate at which prices for goods and services are increasing, while interest rates reflect the cost of borrowing or the return on savings. Historically, higher inflation has often led to higher interest rates, and vice versa. However, with the global economy still recovering from the COVID-19 pandemic, many analysts are predicting that we could see a bullish case for higher inflation and interest rates in the near future. There are several factors that could contribute to higher inflation. The first is the unprecedented amount of stimulus spending that has been injected into the economy by governments across the world. This has led to an increase in the money supply, which could lead to higher inflation as more money chases after the same goods and services. Another factor is supply chain disruptions. The pandemic has disrupted global supply chains, particularly for commodities such as lumber, metals and semiconductors. This has led to increased prices for these goods, and this could ultimately trickle down to other areas of the economy as well. Finally, there is the issue of labor shortages. Many workers left their jobs during the pandemic and have not returned. This has led to a shortage of workers in many industries, which could put upward pressure on wages. Higher wages could lead to higher production costs, which could ultimately lead to higher prices for consumers. So what does all of this mean for interest rates? If inflation does indeed start to rise, central banks may have to raise interest rates in order to keep it under control. This is because higher interest rates can help to slow down spending and borrowing as well as encourage saving. However, central banks also need to be careful not to raise rates too quickly, as this could stifle economic growth and slow down the recovery from the pandemic. Overall, the bullish case for higher inflation and interest rates is not something that should be ignored. While there are still many unknowns about the economy and the ongoing impact of the pandemic, the potential for inflation and interest rates to rise is something that investors and policymakers should be prepared for. As always, careful analysis and thoughtful decision-making will be key to successfully navigating these uncertain times. https://inflationprotection.org/why-higher-inflation-and-interest-rates-are-potentially-beneficial-a-bullish-perspective/?feed_id=99380&_unique_id=64687c7211530 #Inflation #Retirement #GoldIRA #Wealth #Investing #beststockstobuynow #ConsueloMack #consuelomackwealthtrack #jeremygrantham #moneytips #savingmoneytips #stockmarket #Stocks #stockstobuy #stockstobuynow #wealthtrack #WEALTHTRACK #wealthtrackconsuelomack #wealthtrackthisweek #InvestDuringInflation #beststockstobuynow #ConsueloMack #consuelomackwealthtrack #jeremygrantham #moneytips #savingmoneytips #stockmarket #Stocks #stockstobuy #stockstobuynow #wealthtrack #WEALTHTRACK #wealthtrackconsuelomack #wealthtrackthisweek