The first is if governments get even more heavy-handed with pandemic policies. JB: There are really two things that could cause another crash. What – if anything – could change that? What do you think could cause another market crash? And as investors, that is precisely the time we want to invest in the most exciting technology and biotechnology companies. It sneaks up on us, and then it goes vertical. In the next few weeks, we’ll see a 3D-printed rocket go into orbit.Īny of these developments would have sounded impossible even just five years ago… But this is the nature of exponential growth. Decentralized finance applications now hold billions of dollars’ worth of assets. There are active metaverses with their own economic incentives. We now have cars that are essentially fully autonomous. Just think about what we’ve seen already. The other reason why I continue to be bullish on growth investments is because technology is progressing at a pace that would have been unimaginable just a few years ago. And the result of this is that we are going to see a continuation of higher valuations in the most exciting tech and biotech companies. We still have near-zero interest rates and a flood of private capital looking for a return. And that means high-growth technology and biotechnology trading at reasonable valuations. The Brownstone Research strategy in 2022 will be to find assets that are growing faster than the rate of inflation. Gold is down 6.36% this year, even with these sustained levels of higher inflation. It’s a personal decision, of course, but that’s not my recommendation. Many investors are probably thinking about “hiding out” in precious metals like gold and silver. JB: The first thing we need to understand is that if we are just keeping our money in a traditional savings account, we are losing value in real terms every year. metropolitan areas.Īnd I believe we’re going to see sustained levels of higher inflation in 2022. Apartment rents are up significantly in the top 30 U.S. And we’re seeing it show up in the price of rent. According to official inflation readings, the cost of “shelter” is up only 3.9% year-over-year.īut it’s been well-documented how real estate prices have jumped over the last 18 months, especially in places like Florida and Texas where restrictions have been limited. Let’s just look at one common item – the cost of housing. All the government “stimulus” – the $5 trillion+ – is already having an impact on normal people. Over time, these prices will stabilize.īut we need to understand that the money printing we’ve seen in the past 18 months will result in permanently higher prices for many of the goods we depend on every day. And that is being driven by the semiconductor shortage, which we talked about in this series. And that’s part of it.įor instance, the cost of new vehicles in that latest reading is up 11% year-over-year. That figure you listed, 6.8%… that’s a 39-year high.Īll year we’ve been told that inflation is “transitory.” We’ve been told that it’s simply a symptom of the supply chain problems and the shortages that we’ve been experiencing for things like semiconductors. Jeff Brown (JB): Inflation is absolutely skyrocketing right now. The most recent consumer price index (CPI) reading came in at 6.8% for all items. And let’s start by talking about inflation. Van Bryan (VB): Jeff, let’s take a broader look at the economy and financial markets. I’ll ask Jeff his opinion on recent inflation levels, what might cause the next market crash, and his prediction for America’s next president. Today, we’ll be stepping back to look at the economy in 2022. Remember, you can always catch up on earlier editions in this series by going here. At the end of every year, I sit down with Jeff to discuss his biggest predictions for the coming year. Van’s note: Van Bryan here, Jeff Brown’s longtime managing editor.
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