Read this post for insights into why inflation happens and how long it may last.
Doubleline Research Says…
Recently, we had one of our investment partners speak at a Lunch & Learn event for our clients. Ryan Kimmell is an analyst with Doubleline, a company with whom we have significant investments for many of our clients. He gave us the low-down on inflation.
We currently have the highest rates of inflation since the early 1980s. How did we get here? According to Doubleline, the US government pumped $5 trillion into our economy during the pandemic. $1.8 trillion of that went to consumers. Consumers then bought durable goods and stopped spending on services during the pandemic. Econ 101: demand going up + supply going down = prices rise.
If you would like to gain more insight into the nuances of why we have inflation, watch the first 5–10 minutes of this video: