Your Survival Guy

Preparing your investments and family for when disaster strikes.

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How I Feel at the Grocery Store These Days

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By Zoriana Zaitseva @ Shutterstock.com

Too much money chasing too few goods is how I feel at the grocery store these days. The money just isn’t going as far as it used to. You know the story, fewer potato chips in a bag that’s shrinking.

When I’m looking for some meat, I ask myself, “Where’s the beef?” Why do I feel like the lady in that classic Wendy’s commercial? Speaking of which, how is it that White House spokeswoman Jen Psaki places the blame for rising prices on meatpackers?

Then I read in The Wall Street Journal about millennials plunking down $625k for a “starter home.” What does that say about inflation? You tell me. Does it mean prices are coming down from here? I’m not in the prediction business, but prices are as much about emotion (we want our own yard, a quiet street, to start a family) as anything else. If you sell, it’s only “worth” whatever the next guy pays.

How you’ll deal with a downshift in prices or a price that’s a lot lower in a forced liquidity event is called risk management. It’s simply a monetary event skewing price “discovery.” You don’t want to be the one discovering it’s not what you thought it was. Buy for value, not for the chance to sell later at a higher price because you may discover that you can’t.

Back to the government. Is another disaster exactly what they want? Do they want you to need them for a bailout or rent-free housing? After every crash people become more dependent on government welfare. We’ve seen this play out three times already this century. Don’t believe it can’t happen again.

Action Line: Imagine stocks decline by a third, or you can’t sell your house at the “right” price when you need to. These are parts of the risks we face when there’s so much uncertainty in the markets. Your best way to survive is to know that no matter what happens to prices, you don’t need to sell. You invest in stocks for income, and you own your home debt-free to raise a family with the peace of mind you deserve. Take prices out of the mix, and you’ll sleep better at night. I promise you.

Joe Biden’s inflation is hurting America, read more here:

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.