The Surprise Reason Inflation Could Rock Your Stock Portfolio
Wall Street has good reason to worry that rising inflation could send stock prices tumbling.
Higher prices in the real economy are inherently bad for the stock market. And — as I show using charts drawn from a recent article by Lyn Alden Schwartzer — three converging factors could send inflation soaring as we recover from the pandemic-driven economic slowdown.
But in today’s video, I reveal the real reason we’re barreling toward this crisis … and it’s not what you think.
The Big Picture and Your Portfolio
To make smart investments, you need to look past the latest news headlines and see the big picture.
Watch this week’s video to get smart about one of the biggest risks to stocks this year and discover:
- The two ways rising inflation is bad for your portfolio. (1:05-2:54)
- How the depth of America’s economic weakness has been hidden from view for more than a decade. (3:00-4:26)
- The deal with the devil the U.S. made in the 1970s that’s weakened the real economy over time. (4:26-10:50)
- Why 2021 may be the year this policy comes to haunt Wall Street. (10:50-14:00)
Click here to watch this week’s video or click the image below:
As a side note: We don’t provide transcripts for our YouTube videos. However, if you would like to see subtitles, click the “cc” button in the bottom-right corner of the video. The transcription won’t be perfect, but it should help.
Before signing off for today, a quick additional note: Last week we revealed Clint Lee’s groundbreaking Flashpoint Fortunes strategy for 2021. If you were unable to watch the event, I urge you to view the recording now. It could mean the difference between a good 2021 and a great one in the markets.
Editor, The Bauman Letter
An economist by training, I grew up in the U.S. but emigrated to South Africa in the mid-1980s where I became deeply involved in the development and implementation of post-apartheid economic and urbanization policy. During the 90s and 2000s, I was a consultant to a variety of entities, including African and European governments and the United Nations.