So.
I am investing in probably the most uncertain period in recent history. Why? To save money to move out of my parent’s house… and inflation.
You see, look at this chart [1]:
Regardless of the drops, one can assume that
you will profit from it if you invest long-term,
generally.
Another reason why I am investing is inflation. These stimulus checks added more servings (individual dollars) to the pie (100% of all dollars), and the pie didn’t get any bigger– because the dollar is a Fiat money, the worth depends on the strength of the government, aka, economy. And what a better way to measure the strength of an economy: GDP, as shown below in chart 2:
So… The pie actually shank, and there are more servings. Thus… buckle up.
However, this chart [2] is missing a critical year: 2021.
What does that mean? That’s for another post.
Till then 😘
With love and sincerity,
Jose Michael Rubio
P.S. One thing to keep in mind, and it’s just a thought, is that current stock prices could already reflect inflation’s effect because many stimulus checks went into the market.
Just speculation.
Disclaimer: invest at your own risk.
Photos are from Google.