I am sure that we all noticed this covid 19 has introduced us to extraordinary economic conditions that benefit many and also push down many as well.
Of course those that benefit has mainly been those with assets and property, like real estate and stock securities.
What I'd like to discuss here is your personal experience with inevitable inflationary environment in Canada.
Just now I visited Costco and a lot of the prices seem okay. But I just purchased a 30-egg pack that normally would cost 6.45 now priced at 7.25.
That makes each egg effectively costing you a quarter.
I look at stable food that has set amount of cost mandated by the government like milk, egg, wheat, and basic commodities.
We are witnessing some of the most incredible price appreciation on so many of these resources that hasn't seen a massive fluctuation in price since 2007-2008.
I think that we are just getting started. Money velocity remains the lowest in generation which is pushing the asset prices higher. Soon or later they are going to cash out their assets and start spending like cows.
We have to remember that CPI or inflation metric set by Canada and United States are lies, tweeked to represent as little inflation as possible, and with hedonistic metric that penalizes progress in inflation, I do not trust the official inflation rate one bit. How can anybody really claim that these is no or minimal inflation? It's here and we are all seeing them in asset classes at level we have never seen.
What do you think is going to happen in 2021? How are you preparing yourself and your family for incoming inflationary environment?