Inflation will be a consequence of … this and this Have you been buying broths on a lettuce date guessing Yes! everything its over, it’s ok! and the next day the whole market is red? To remain alive in the stock market We need to understand the big picture Now, inflation is the enemy number one So is this the end of the free fall? Why is inflation filling the stock market with nervousnes? And if it comes, how would this affect the stocks? and how can affect the stocks you own Ill leave the chapters below, in case you want to move around Let talk about that When everything is green, we love to see our portfolio, world markets, everything is nice But if you really think about it The hours when people attain more fund Is after a big market crash or chastening Buying the troughs So , now! is the time to watch the market during times of fear and ambiguity The planneds, the premium action, the word, and places great importance on the ones on inflation Because, yes! You can focus on earnings, acquisitions But, if the large-hearted army the fear of inflation !… Keep pushing down A enormous revenue and beating apprehensions might not be enough to drive the price up for too long It seems like a cliche to repeat Warren buffet but frankly this is a phrase to tattoo into our psyches Be greedy when others are fearful and frightened when others are greedy Learning from the lord! Thank you Mr.Buffett! But, how can we know when the fear is over? By understanding the big picture If you want to chase light-green days in the stock market You might reach some coin but at the end of the day theres a high probability that you will fall into the 90% of people who loses fund in the stock market So with this been said…Lets talk about inflation Long story short Inflation is how much your money loses evaluate over period it’s the rise in the cost of goods and services You can track inflation by following the CPI this tracks the price of common goods, like menu, garb and so on There are 2 main kinds of inflation A good example is Demand-pull is this Money is been reproduced, Yes! I can buy more stuff! Like this guy Many people can buy more trash But if the supply doesnt meet the demand What happens? I have 10 iPhone to sell, and I have 100 beings outside so, what can I do? Im going to raise the price Inflation! A good example of Cost-push is this Suppose the cost of becoming those iPhones increases the battery, the screen, the chips, the camera…So the iPhone guy says … Im going to raise the price…again! Inflation! So you have the one where give cannot meet the demand And the other where the costs of obligating those commodities increases And we have to pay it So, got my eye on the equip and demand relationship and on the margins of the companies in your portfolio The FED and the central banks Have the main task of stabilizing the economy One of the ways they do this is by controlling the rates at which bank borrow money from big banks and other entities So banks borrow from other banks to give it Fellowship borrow from banks to grow and customers like us acquire from banks to buy stuff Thats the spell change of the money in the economy To reactivate the economy The Governments did two main things They lower the interest rates Now banks, companies, and shoppers can borrow money and compensate fewer and with low-spirited interest rates retaining coin in the bank is not very profitable countless people decided to invest it and this didnt push the economy up in a healthful room By rolling around from banks to companies to consumers and from consumers to companies to banks So a lot of stocks reached very high prices just for the hype Stimulus checks By making more money the Governments spur giving, but as more fund overflows the economy Print, print, book! The lower the value of the currency Its the basics of supply and demand Very much of something and it becomes cheap How can inflation be controlled? One behavior is by Increasing the interest rates Why would a government do something like that? Since borrowing is more expensive The money supply is lowered And in time, the remaining balance between supply and require start moving into healthful ranks I want to know, how inflation is gonna feigns my stocks? Due to globalization, technology and now the booming wreak from home trend Some companies can reduce costs vastly Smart corporations are doing it But the fact that higher interest rates Causes borrowing money to be more expensive The business with high obligation become riskier because they can fall in the short term Honestly, Im only not going to starts buying bails or index monies I like the risk with a potentially high return But thats just me, I’m not a financial advisor Im trying to follow Mr.Buffets repeat And I am attaching to my expansion and cost broths Constructing my post for the long term, buying the dips! Because the stock market will turn around And I might have in my portfolio The next Tesla Stock See you next time !.
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