To The Moon

• Investors need to be aware that inflation damage compounds over time. We have undergone a secular change, and inflation will continue to move up over the medium term.

• Inflation has slowed from its 9.1% high in June 2022, but it has reaccelerated to 3.5% from the 3.0% low in June 2023.

• If you had $1,000,000 in cash in March 2021, the purchasing power of that would only be $848,445.

• Federal government spending is out of control, which has continued to fuel inflation. Driven by increasing interest expenses and spending, we expect a $2 trillion deficit for 2024.

• The Fed has been complicit. The balance sheet ballooned from $872 billion before the 2008 financial crisis to $8.9 trillion in April 2022. QT has made a dent, but it still sits at $7.4 trillion.

• Nominal GDP, 10-year and 30-year Treasury yield generally move in tandem. Currently, interest rates are below what we would expect.

• Own assets that will do well in an inflationary environment.

• Stocks should do well. We like oil and gold stocks in particular, as they are well-positioned from a supply-and-demand perspective and are undervalued by the market.

• We are avoiding any bond over 5 years in maturity. Inflation eats away at the value over time, and as rates go up, the nominal price of the bond is destroyed.

• Cash-like instruments like CDs and T-Bills with under 1-year maturity are also a good choice. $iShares 20+ Year Treasury Bond ETF(TLT)$ $iShares Short Treasury Bond ETF(SHV)$ $iShares 7-10 Year Treasury Bond ETF(IEF)$

https://buildingbenjamins.com/market-and-economy/video-is-your-portfolio-and-retirement-safe-from-the-devasting-damage-of-inflation/