Epic Real Estate Investing - BREAKING: Inflation Is BACK... What to Do NOW! | 1383

Episode Date: November 14, 2024

Inflation has made a notable uptick for the first time since March, with headline inflation rising to 2.6%, signaling a shift in the economic landscape. While core inflation has remained steady at 3.3%, the recent increase in consumer prices highlights persistent inflationary pressures. The Federal Reserve's ongoing rate cuts, aimed at stimulating borrowing and boosting economic activity, could inadvertently fuel further inflationary growth, creating a delicate balancing act for policymakers. With another rate cut expected in December, there are growing concerns about the potential for unintended consequences, such as rising asset prices or excessive inflation that could undermine purchasing power. In light of these developments, financial experts are advising individuals to hedge against inflation by diversifying their portfolios into assets that tend to perform well during inflationary periods, such as real estate, commodities, and inflation-indexed bonds. Despite these strategies, prices for everyday necessities like food, gas, and housing are projected to continue climbing, straining household budgets. Looking further ahead, the long-term inflationary outlook remains uncertain, with some economists predicting that inflationary pressures could intensify by 2025-2026, especially if current economic policies remain in place. The future of inflation could also be influenced by political shifts, with the potential for a Trump presidency bringing a new set of policies that may alter the trajectory of inflation management. As the situation evolves, navigating these changes will require careful consideration and adaptability. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. inflation has risen for the first time since March, and if you're still feeling the pinch, you're not alone. So let's go over what's happening, why it's happening, and most importantly, what you can do about it. Here's the deal. Headline inflation just rose to 2.6% up from 2.4% last month. Core inflation is holding steady at 3.3%. Now, this may not sound like much, but it is the first increase that we've seen in months when we've been told it's under control. So why is this happening now? Well, on September 18th, the Federal Reserve made their first rate cut in four years, lowering rates from 5.5 to 5.0 percent.

Rate cuts, they make borrowing cheaper, which can fuel inflation. And the big question now is, will they cut rates again in December? The market seems to think so. Odds of another rate cut have jumped from 60 percent to 82 percent since this report came out today. And here's the thing. History shows that cutting rates too soon can backfire, causing inflation to spiral. causing inflation to spiral further.

I mean, take a look at this chart right here. It is a lesson from the past. All right. So, inflation is rising and rate cuts are likely to continue. The Fed has said so, and the market agrees that it's going to happen. But what does this mean for you? Whatever you were doing before to hedge against inflation, you might want to stay the course for a minute.

If you're not in already, you're going to want to consider inflation-resistant assets like real estate commodities or inflation indexed bonds. Although Bitcoin and the stock market are flourishing, I mean, they're totally on fire. You might not want to cash in your chips for Lambo quite yet. When it comes to prices, whether it's rent, utilities, or insurance expect costs to keep climbing. And here's the part that most people don't talk about is inflation doesn't explode overnight. I mean, there is a lag.

In today's report, it could be just the beginning. We're likely to see inflation ramp up into late 2025 with the full impact hitting us by 2006. And one thing's for sure. prices are not coming down. The Fed has already said they're more worried about deflation than letting inflation run hot, so don't expect relief anytime soon. But there is a wildcard, a Trump presidency. His pro-business policies could cause inflation to run hotter and faster. Or if you look at the layman's definition of inflation, too much money chasing too few goods, what if his plans for deregulation or his threats of tariffs cause countries,

to chill and play nice. Could we see more goods in the system in 2025 to keep up with the more money in the system? Could there be a scenario there where we continue to cut rates without seeing inflation? Appreciate you being here. If you appreciate the updates, like, subscribe, share, do all that fun stuff. I'll see you next time. Take care. And that wraps up the epic show.

If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got the cash flow. You didn't know home world. We got the cash flow. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.