Inflation impacts Middle-Class Millionaires in a number of ways, not just in a steady rise in the prices of the things we buy every day. One of the most complicated is how the monthly/annual inflation rate influences our interest rates—the rate at which we borrow money. Really? In May the so-called core consumer price index—basically … Continue reading “Inflation’s Tie to Interest Rates”
Inflation’s Tie to Interest Rates
August 16th, 2023
Housing Starts in Decline
Did you know that last year, roughly 1.66 million new homes were constructed? This includes single-family homes (975 million), 2-4 unit residences (54.8 million), and buildings with 5 or more family units (635 million). This total number is actually down from the 1.73 million new homes built in 2021, and 2023 is on pace for … Continue reading “Housing Starts in Decline”
Is Inflation Peaking?
One lesser-known indicator is called the Baltic Dry Index. We know our middle-class millionaire clients see it in prices at the grocery store and the gas station and feel it in their monthly budget. So why don’t the financial markets seem too concerned about inflation? Remember, financial markets are considered “discounting mechanisms,” meaning they are … Continue reading “Is Inflation Peaking?”
