Philotimo Wealth Management

‍https://awealthofcommonsense.com/2021/11/the-worst-case-inflation-scenario/

Click the link above to check out the full article. The article is written by a US based author, but the data and overall sentiment is applicable to Canadians as well. We thought this article was fitting as Jerry was recently telling CJ about his experiences with inflation and interest rates in the 70's, 80's and 90's. We know our clients are hearing all about inflation, is it good, is it bad, is it TRANSITORY? A lot of our conversations this year are centered around inflation and what that means for clients. We have pulled a few of our favourite quotes from the article below, but would encourage you to check the full article to learn more and let us know what you think!

The last time inflation was this high Michael Jordan had yet to win his first NBA championship. Ice Ice Baby was the number one song on the pop charts. And "Al Gore (actually Tim Berners-Lee)" had just put the finishing touches on a formal proposal for the World Wide Web.

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Back in 1990 savers were protected against higher inflation because yields were much higher than inflation across the board. Can you imagine earning 7-8% on government bonds or money market funds today? Investing was so much easier in the 1990s.

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I’m not here to argue inflation is a good thing. I’m just saying the current situation puts households in a much better position financially than they were the last time inflation was at these levels.

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The worst-case scenario from here would be if inflation remains elevated and rates rise substantially.

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The article linked and mentioned above was posted November 14, 2021 by Ben Carlson at https://awealthofcommonsense.com/.

This article was prepared by CJ Stevens and Jerry Kallitsis who are both mutual fund representatives with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views expressed in this article are those of the author alone, and are not necessarily those of Investia Financial Services Inc. The content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity.