The third week of August, Doug will be in San Francisco for the San Francisco Money Show, and you can attend and hear his talk on ETF investing and other important investing topics. For more information on the Money Show or to buy tickets, check out their website here.
We are seeing some price inflation – in commodities like milk, meat and other agricultural products, in entertainment (movie tickets, etc.), healthcare, water and in energy prices. There is inflation in taxes and government fees. But, this is not the inflation of the 1970′s, because the Federal Reserve only calculates inflation based on wages and rent, neither of which have gone up significantly.
Also, we are seeing deflationary action in some market areas, such as: clothing, technology, fuel efficiency and natural gas. The U.S. dollar is falling once again, and we are only about 2% away from recent lows there, which would lead to more inflation.
However, even if that happens, we don’t think that interest rates will raise significantly. We believe that interest rates will remain stable because the world economy cannot handle sharply higher interest rates in the U.S.
If you have questions about investing and how inflation or deflation might affect your portfolio, please email askdoug(at)dougfabian(dot)com.