We're seeing more and more news about inflation. Of course, if you've bought building materials over the past two years, you've seen prices skyrocket. Whether a result of international events (e.g., pressure on Russian oil exports) or the supply / demand curve, the price of fuel for your vehicle, food, and other basics has increased considerably in the past year or so.
Most people in the US under the age of 65 have not experienced high inflation, which effectively ended in 1983. Here's a good conversation starter with an older individual: "what was the interest rate on your first mortgage?" (Hint: expect rates over 15%!)
At OptIn Ventures, we're focused on the macro- financial factors around inflation. Our investors typically consider themselves to have broadly diversified portfolios: stocks, bonds, real estate investments. In my next post, I'll dig into the experience of the 70s and 80s, contrast stagflation with our current environment, and discuss how investors might frame their investment decisions if they believe our inflationary environment will continue. Stay tuned.
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