How to Prosper in the Time of Inflation - Cabot Wealth Network

How to Prosper in the Time of Inflation

Get tips, tricks, and secrets about beating inflation—when you read the January 2022 issue of our Magazine, just released!

CMC Mag Cover

Inflation, Inflation, Inflation! You can’t turn on the TV without hearing someone talk about inflation and rising prices. And, once in a while, you hear a quote that actually makes sense, like these:

  • “Inflation is taxation without legislation.” Milton Friedman
  • “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” Ronald Reagan
  • “Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won’t grow any faster than the rate of inflation.” Suze Orman

According to thebalance.com, we have not seen really high inflation since the early 1980s, amidst a rash of savings and loan failures and a recession. Here is how inflation has looked since the mid-20th century:

post WWII inflation

Now with the Federal Reserve set to raise rates three times in 2023, I thought it might be prudent to talk about inflation.

Here is what Fed Chairman Jerome (Jay) Powell had to say in his press conference last week:

“Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation. In particular, bottlenecks and supply constraints are limiting how quickly production can respond to higher demand in the near term.

“Overall inflation is running well above our 2 percent longer-run goal and will likely continue to do so well into next year. While the drivers of higher inflation have been predominantly connected to the dislocations caused by the pandemic, price increases have now spread to a broader range of goods and services. In light of the strengthening labor market and elevated inflation pressures, we decided to speed up the reductions in our asset purchases.”

The result of those statements: The Federal Reserve is tapering off its bond buying faster to decrease economic stimulation. Tapering is now scheduled to be completed by March. And most of the Fed officials are now estimating that we will see “at least three more rate increases in 2023 and two more in 2024.”

Read the feature article in this month’s magazine now to learn all about how you can beat inflation and prosper.

First, you get a complete and concise definition of “What is inflation?”—including all the pros and cons (yes, inflation isn’t always all bad!). And you get a concise explanation of what rising inflation means to you as a consumer—from energy and home-heating costs to automobiles, food, and home-buying, you’ll get a good picture of how today’s inflation affects these purchases.

As a consumer, you get two detailed steps for mitigating the effects of inflation when you read this article:

  • Step 1: The Consumer Products You Might Want to Buy Now Instead of Later: Get all the details about six categories of items you should consider buying now, to avoid the likely spike in costs later as inflation rises.
  • Step 2: Pay Down Some Debt: As interest rates rise next year, so will the price of the debt you are carrying. So, you may want to consider reducing, eliminating, or refinancing some of your debt balances. In this article, get a list of the top three types of debt you should consider paying down—and all the reasons why!

When you read this article in the January 2022 issue of our Magazine, you’ll learn all about how rising inflation affects individual investors—and you get detailed advice, in two steps, about how to adjust your investing strategy for inflationary times:

Finally, get five specific stock recommendations for protecting your portfolio during inflation … and for actually profiting from the inflationary environment!

Read this article now to learn how to protect your wealth during these inflationary times—and get everything else in this issue of our magazine, including:

This latest issue of our Magazine is ready for you to access now, to discover how to weather the inflation storm and actually prosper during these times of rising costs … and much more. Read it now!

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