Secular inflation is here

Chip shortage about to get worse.

Market full of talks about stagflation. Hyperinflation + recession. What shall we do? Where is the best place to park your cash?

Cash is :-1:
Most Stocks are :-1:
Some stocks are :+1: Oil
Real estate? Price up rent down?
People are rushing to buy property rather than rent. In addition to secular forces, cost driven inflation is pushing cost of new construction and replacement cost up => surging house prices regardless of mortgage rates and imminent recession.

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What is the difference between the prices of an older vs the newest car of identical model? Answer is relevant to an upgrader. If higher than before current surge, no point upgrading.

Gold?
Re: home prices my insurance took a huge jump - mostly because of the estimated increase in replacement cost. Property taxes took a jump too - justified I suppose because public employees like cops have to live somewhere and now the diesel that powers the snowplows is over $5 a gallon. So no one is totally immune to inflation. Doesn’t really hurt me but seniors living on SS thinking they’re OK because at least they got their house paid off will have to really tighten their belts. I was at a check-out yesterday listening to a door-dash guy complain that people were now too cheap to tip.

People complain about everything. I was door dashing early in the pandemic. Dashers had the same complaints then too. When I was a server pre-pandemic, other servers complain about tips nonstop. Like please quit, so this misery stops in your life but they showed up again and again and repeat the same shit. :man_facepalming:t3:

Look at my door dash earnings from 2020-2021

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WSJ: Will Inflation Fall? Any Pullback Depends on These Sectors

Factors affecting cars, rent, energy and other categories play roles in determining if a drop will occur

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I get eggs from the farmer’s market.

Jumbo organic free range brown

9 months back they were
$7.50/dozen
3 months back they became
$8.5/dozen
Today the prices were
$11.5/dozen

53% increase 9 months …

Just buy regular eggs at Safeway. Easy way to beat inflation. Nationwide eggs are up 11%

Wife likes them. So I have to ease into it slowly :wink:

I went to a hair stylist for a regular cut 2 weeks ago in Florida City close to the glades. It was 25$! This was not at a hair salon chain.
I don’t know how they afford things there. And I thought 20$ at great clips in Santa Clara was a lot!

Locally there’s an outlet for duck eggs. $5 a dozen, huge, rich and delicious. So I have at least temporarily beat the egg crisis (no pun intended).
On the other hand I’m paying double for hard winter wheat, when I can find it, for bread making. Of course that still beats the price of store brought bread and it’s much healthier.
Today a local watering hole did an early St Patty’s day thing and the Humane Society showed up with dogs for adoption. Most found homes. Dogs aren’t cheap to keep so I guess that’s some hope.

Higher wages are everywhere now. Even small towns in Oregon have signs that hiring starts at $15/hr. It’s not just the big cities anymore. I think people making below median income are going to see large wage gains.

Laborers in Tahoe want $50/hr. Plumbers $200/hr. Tech salaries don’t look so big anymore.

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