From October 2020 to October 2021, the Consumer Price Index for All Urban Consumers grew by 6.2 percent, which according to the Bureau of Labor Statistics, was the most significant 12-month gain since November 1990. In relation to this data, we have dedicated today’s episode to exploring more about inflation. Throughout this episode, Grant shares his thoughts about the impact of inflation on the present economic environment and numerous ways to mitigate the risk of inflation.
[04:21] CPI – Grant explains what CPI is and its relationship with the inflation rate.
[06:40] Inflation – Grant explains inflation in simple terms, pointing out several misconceptions about it.
[09:20] Will the History Repeat? – Grant analyzes and compares the current economic context in the US with the economy in the late 70s and early 80s.
[10:12] Gold and US Dollars – Grant broadly explains the evolution of the relationship between gold and US dollars.
[15:30] Present Economic Situation – Grant delves deeply into the current economic climate in the United States from various perspectives and then provides his thoughts on those observations.
[20:55] TIPS – Grant discusses how increasing your allocation to Treasury Inflation-Protected Securities can act as an inflation hedge.
[23:32] Series I bonds – Grant identifies investing in these types of bonds as an excellent alternative to hedge inflation.
[28:26] Investing in Gold – Grant discusses the potential of investing in gold and shares his thoughts on the matter.
[32:12] Equity – Grant identifies equities as an excellent inflation hedge in the long term.
[34:52] Asset Allocation– As a final remark, Grant discusses his ideas on asset allocation in general.
Bureau of Labor Statistics & CPI-U: bls.gov/cpi/
Treasury Direct & Series I Bonds: treasurydirect.gov/indiv/products/prod_ibonds_glance.html