Lagniappe

The Impact of Inflation on Commodities, Businesses, and the Stock Market


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Inflation is commonly discussed in terms of its impact on commodity prices. However, its effects go much deeper than that. Businesses, the stock market, and even interest rates are affected by it. As inflation ripples through the economy, what is the federal government doing to deal with this problem?

In this episode, Doug and Greg talk about inflation trends and their associated risks. They speak about the impact of inflation on commodities, businesses, and the stock market, the federal government's response to inflation, and how treasury risk premiums affect various asset classes.


Key Takeaways

  • [00:21] - Doug and Greg's market forecast for this week.
  • [04:04] - Trend in inflation and its associated risks.
  • [06:59] - How Doug and Greg design portfolios.
  • [08:47] - The impact of inflation on commodities and services.
  • [13:47] - The federal government's response to inflation.
  • [16:23] - How the risk premium to treasuries affects various asset classes today.

  • Quotes

    [04:19] - "There are a lot of components to the inflationary picture that seems to be slowing down. The risk is that the policymakers are making decisions from an interest rate standpoint with the analogy of the late 1970s when inflation existed for 15 years and wanted to nip it in the bud." ~ Greg Stokes

    [11:42] - "It's very difficult to be a business owner and a big participant in the global economy and manage a business with many variabilities." ~ Doug Stokes

    [13:27] - "There's tremendous volatility in all aspects of business and the same thing in the markets. Even though we have inflation in the 8% range, unemployment is low. Unemployment is 3.5%, so that's an interesting dichotomy of what's happening right now." ~ Greg Stokes


    Links 

    • Ken Fisher
    • Morgan Housel
    • Ben Carlson
    • How Much Do Interest Rates Matter to the Stock Market
    • Vanguard

    • Connect with our hosts

      • Doug Stokes
      • Greg Stokes
      • Stokes Family Office

      • Subscribe and stay in touch

        • Apple Podcasts
        • Spotify
        • Google Podcasts
        • lagniappe.stokesfamilyoffice.com

        • 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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