Today is an interesting day in the US financial market. It’s like a breath of relief or a long-waited rain on a drought. 😊 The Federal reserve still raised the short-term interest rate by 0.25%, but this is a slowing trend. The hikes were 0.50% last time and 0.75% prior. Therefore, the financial market isContinue reading “Is it finally a firm trend of disinflation?”
Tag Archives: inflation
US new tenant rent inflation cooled
Rent of new lease inflation is cooling in US. The key word is new lease. Housing is the biggest item on a household budget. Any change of inflation direction is significant. However, lease is usually a year, so the change on the new lease got buried in the existing leases signed within the 12 months.Continue reading “US new tenant rent inflation cooled”
Use Go Fund Me to pay for necessity?
Just heard in the Marketplace podcast that a single mother in US had to use Go Fund Me to raise $2000 to cover cost of car and air conditioning repair because her salary as an assistant to a Physician can’t catch up with inflation. She has a 9-year-old son who is as tall as sheContinue reading “Use Go Fund Me to pay for necessity?”
Class warfare – does wage increase contribute to inflation?
It seems that is the position of Bank of Canada Governor, Tiff Macklem. That seems one of his justifications to increase interest rate to increase unemployment to fight inflation. No wonder he got push back from union and NGO leaders. Just one question first. Does wage increase keep pace with inflation now or ever? IfContinue reading “Class warfare – does wage increase contribute to inflation?”
Ability to increase price
I kept hearing pros on TV suggesting investing in companies that can increase price in this inflation environment. On the other hand, I heard that some companies generated record profits, much more than what is necessary to cover the additional costs caused by inflation. Some products are the necessity such as grocery, gas, etc. peopleContinue reading “Ability to increase price“
Inflation? Whose fault is that?
Bank of Canada said the way to fight inflation is to raise interest rate to crush demand. It sounds like people have too much money in their pockets, so the central bank needs to make it harder for them to buy stuff. Some even blame the covid relief fund. Perhaps they should talk to thoseContinue reading “Inflation? Whose fault is that?“
How much cash should we hold?
That is very timely question. Putting cash in a high interest saving account can’t beat inflation still. However, we need to keep enough cash for emergency purpose. In retirement, the need for cash to cover living expense is even higher. Therefore, it is important to maintain a fine balance of growth and security. In theContinue reading “How much cash should we hold?”
Be careful of what you wish for
I recalled this story of a single mother on her quest for home ownership. During pandemic, her landlord wanted to sell the house she was renting because the housing market was red hot. She can’t find a place with the similar rent and space. Therefore, she considered buying a place. However, her credit score wasContinue reading “Be careful of what you wish for”