Chapman Capital Advisors

Need More Coupons - MyLivingMagazine.comIn ation is Here to Stay For Now

In ation is rearing its ugly head, and there is nothing you can do about it. It is time to buckle up and create a more de ned budget. We have all seen the price increases at the grocery store and at the gas pump. e Federal Reserve used the term “transitory” to describe the current state of in ation. I am not buying this one bit. In ation might not be permanent, but it is not going away anytime soon.

In ation is peaking its head because of Federal Reserve policy as well as pent up demand from Covid. e Federal Reserve has done zero to curb in ation, in fact they have not only instigated it, but they have also maintained a policy that will exacerbate it over the coming months and years. e sad part is they know the correct moves to slow it down, but they are afraid of the potential fallout in the nancial markets as well as potentially causing a recession. Not utilizing any of the tools the Federal Reserve has at its disposal to slow this train down is negligent at best. Sitting on your hands and hoping it goes away is not a strategy. Most recently, the Federal Reserve went from using the term “transitory” to “frustrating.” It is frustrating to watch for the consumer because we are directly a ected by the negligent action of our Federal Reserve. Unfortunately, we cannot do anything to curb in ation. However, we can adjust our spending habits and cut back if necessary.

If you read any of the articles I write about investing, you know I always discuss having a strategy. Do you think Bill Belichick goes into a football game without having a de ned strategy to win the game and take advantage of the other teams’ weaknesses? Nope. He studies lm and creates plays designed to exploit the weaknesses of his opponent. We as consumers need to create our own strategy to get through the next few years of this. Have you already started cutting back on your spending? ere are many things we can do to cut back. I know it is di cult to think about, but it is a suitable time to start. You can try to cut back on driving, this will save you money at the gas pump. You can look for sales at the grocery store and utilize coupons. is will save you on your grocery bill. You can also choose to invest your money wisely.

Investing in stocks and real estate is wise during in ationary periods. ese investment vehicles function as a hedge against in ation. For instance, you could invest in energy companies to o set to rise in oil and gas prices. Commodity prices rise during times of in ation, so investing in the companies tied to commodity prices will also act a hedge against in ation. We help our clients through these di cult periods by investing in companies that will grow pro ts during in ationary periods. Please feel free to call and schedule an appointment if you would like to start planning your strategy.

Money Talks

by Jay Chapman, CFP®

All the opinions expressed in this article are that of the authors and should not be considered nancial advice for your individual portfolio.

If you would like to learn more about this topic or have your complimentary portfolio reviewed please contact Jay Chapman, CFP® at Chapman Capital Advisors 772-320-9658 or email Jay@ChapmanCapitalAdvisors.com Charting a Course For Your Future

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