It’s becoming clear that consumer inflation can no longer be disguised as a blip or “transitory”. Wide recognition of this as an indisputable issue will create large sell-offs in the bond and stock markets…. with a long recovery period anticipated.

The stock and bond markets are now at the long-awaited peak…the actual high point should be this Fall or, at the latest, Winter. Individual investors including the new investor generation of Millennials are “all-in” along with the Federal Reserve and Federal Government on money and debt creation. We can expect more Federal Reserve moves to stabilize the banking system and continue to drive up the “wealth effect” of consumers but their long-time strategies continue to fall short and will likely give us a long-term “stag-flation” economy with inadequate job growth. The stock and bond markets are beginning to catch on that inflation is our new normal…not economic growth and jobs creation.

So far we’ve seen the top 1% or so of our country benefit from the Fed’s money creation in league with Congress's multi-Trillion dollar deficit spending! No one can argue the high inflation in the stock, bond, and residential real estate markets. Now, we’re on track to see historically high inflation in consumer prices with continuing stresses in the job market.

Time to diversify out of many stock and bond investments; re-evaluate your own investment risks! Specialized and alternative investment categories and actions will be the next mega-trend with Trillions moving out of stock and bond indexed funds into real estate, commodities, and other specialized investment classes. Once again, crypto is not an investment class and it’s best to avoid.

Do you have an idea how to value Bitcoin as an investment? As a currency? This podcast will give you time-tested perspectives of valuing a new asset class. Don’t buy cryptocurrency before trying to evaluate the risks inherent in the early stages of adoption, technology evolution, and Central Bank influences as we discuss.

Today’s focus is good news on our economic recovery plus a look in-depth at the national real estate marketplace (particularly REIT’s).

Link to the UCLA Anderson Forecast video: https://www.Youtube.com/watch?v=VkPYhht2aws

Link to the Hoya Capital REIT article: https://seekingalpha.com/article/4432330-apartment-reits-happy-landlords-unhappy-renters

Stock groups that perform differently during an inflationary period (which we’re experiencing) vs. our “Goldilock’s Years” should be considered. Perspectives on “where we are” in our recovery and Crypto’s future included.

JPMorgan’s top analyst is sounding the inflation alarm; we are at an inflection point where major asset reallocations will shortly impact the bond and stock markets in most negative ways. His investment advice is to move away from bonds and technology leaders (sell) and move toward commodity funds and stocks (buy). Does this make sense? You decide after today’s podcast!

Links used in this podcast:

https://www.reddit.com/r/shrinkflation/

After a year of COVID distancing and endless money creation, financial markets are self-sustaining. Key components of market psychology and cumulative bias has replaced economic and financial metrics. It’s happened before with terrible financial outcomes for many. If you feel you are missing the vast crypto or stock market profits this podcast is for you!

Link to psychological bias’ covered in the podcast: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/list-top-10-types-cognitive-bias/

Many millions are left out of the recovery and many businesses cannot find needed employees for current jobs. What’s going on?

Links referred to in this podcast: https://www.bls.gov/news.release/pdf/jolts.pdf