February 22, 2022

Diversification, ESG Investing, and Inflation

30 minutes

Doug and Greg talk about why the cure to inflation is inflation, and why US stocks continue to outperform international stocks.

Key Takeaways

[00:28] - 2022 kicks off with a consumer price rise.

[05:31] - Why Doug believes the Federal Reserve is very market-facing.

[09:49] - The cure to inflation is inflation.

[12:13] - Efficient automobiles: from gasoline to electric.

[13:04] - What is ESG investing?

[14:12] - The rule of the commodity market.

[15:50] - What's a commodity supercycle?

[16:54] - Who's the biggest performer in recent inflation?

[18:13] - Why is it important to diversify?

[20:44] - Annualized return from the US compared to international countries.

[23:58] - Why the market and tax administration is a great factor in US relocation.

[27:48] - Why the state of California tops most rankings.

Quotes

[14:32] - “In 2012, emerging markets were up and commodities were down. In 2013, small-cap US stocks were up big and emerging markets were down. The whole idea behind this is it's important to stay diversified and not put all of your eggs in one basket.” - Greg Stokes

[19:16] - “It's important, number one, to diversify because nobody knows what's going to be the best performer over any given period of time. And just because it's the best performer one year doesn't mean it's going to be the best performer the next year.” - Greg Stokes

Links

U.S. Inflation Hit 7% in December, Fastest Pace Since 1982 | Wall Street Journal

Jerome Powell

2018 Doesn’t Prove Rate Hikes Are Bad for Stocks | Fisher Investments

Inflation in Time & Inconvenience by Ben Carlson | A Wealth of Common Sense

Markets That Are Definitely NOT In a Bubble by Ben Carlson | A Wealth of Common Sense

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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.

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