Timothy Sumer

M4—the broadest measure of money supply—rose sharply in 2020, which drove increased concerns about inflation. However, Fisher Investments’ founder and Co-Chief Investment Officer Ken Fisher says it’s not just the quantity of money that matters for inflation but also how fast that money changes hands, otherwise known as money velocity. In 2020, money velocity plummeted, offsetting a lot of the growth in money supply. Therefore, Ken says M4’s 2020 spike may not be as inflationary as everyone fears. Further, Ken argues that M4 may not be the best measurement of money when it comes to inflation, as it includes money-types that aren’t commonly used as a medium of exchange (aka “near money”). Ken says money that is used as a medium of exchange (aka “real money”—coins, bills, checking and savings accounts) didn’t actually increase that much last year, and it’s the velocity of real money that matters most for inflation. Ken notes we don’t have a great measurement of velocity for re...

Inflation is on the rise, and it's important to know how to protect your finances. In this video, I'll share some tips on how to inflation-proof your finances, including how to invest in inflation-protected assets, how to reduce your spending, and how to negotiate your bills. Here are some of the specific things I'll cover in the video: How to invest in inflation-protected assets, such as TIPS, commodities, and real estate. How to reduce your spending by tracking your expenses, cutting out unnecessary costs, and negotiating your bills. How to protect your emergency fund from inflation. How to inflation-proof your retirement. I'll also share some additional tips and resources that you can use to protect your finances from inflation. If you're worried about the impact of inflation on your finances, then this video is for you. I'll show you how to take steps to protect your money and ensure that your finances are inflation-proof. Please subscribe, Lik...