There are two kinds of inflation simultaneously wreaking havoc on our economy, and 2022 could be the year when inflation starts to hit the stock market adversely. But how bad will it be? Will inflation finally cause a stock market crash in 2022? Steve Forbes on what investors need to consider when it comes to the two kinds of inflation and on the darkening cloud hanging over the New Year, which is undermining the dollar's value.
What's Ahead featuring Steve Forbes provides his insights and perspective, to stay on top of what's happening in this ever-turbulent world with glimpses into the future. What’s Ahead airs Tuesdays, Thursdays and Fridays.
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A crash might be just what the market needs. Individuals, businesses and government alike need to live within a budget. Invest only what you can afford is prudent advice.
Exacly
dam right!
A reset needs to happen either for bad or good. People make money however but the ones that move the world with a “real” job are getting buried more each day… im 26 still living with my parents making about 4k-5k a month plus my own jobs but I rather help put my parents and ag the same time help my self out by not getting in debt I drive a 5k honda car…a damn reliable semi new car it’s 20k to 30k when you could buy a mobile home and even that some mobile homes are like 50k …a house used to be affordable too now they are like 150k minimum and the more time passes stuff gets more expensive
@Jose Ramos exacly, inflation is the killer
love your work Steve!!
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.
Warren Buffet philosophy
@Young Meesha go ahead and Ask. . .???
Way are you saying still buy? 🤔 Buy inverse ETF’s, short your options? Something other then buy something that’s going to fall and rebound. Sell and buy inverse. Let’s get this party 🥳 🎉 🤪 started. Gravity is faster, bigger and more aggressive.
@Rob Lowe what about apple and Bitcoin?
@Wedson Olivia Looks like American stocks are still overpriced. The market has a mind of its own. Who knows what to buy before the crash?
The oversupply and devaluation of fiat currency is a critical factor, but the biggest debacle is a global supply chain destroyed by inept national government meddling in many countries which continues today.
The global supply chain, if left alone from national government meddling, would have adapted, adjusted and reconfigured itself – instead, it was prevented from doing this by governments, and we’re going to experience the results of this disruption for many years, many more years if world governments continue to interfere directly and indirectly.
The coming bear market, recession if not depression, will provide a plethora of bargains for those prepared to buy. As the economic collapse accelerates and deepens, you can be certain governments the world over will exacerbate the situation, providing even greater opportunities for investors.
The corruption, malfeasance, greed, ineptitude, and incompetence of politicians and bureaucrats the world over will be obvious as they fail to control the economic monster they created.
I’m looking forward to a great, prosperous and better future!
From one S.Forbes to another I approve this message.
made my day.
I’m looking at the market right now, not scratching my head. I think we all seen it coming, we were just trying not to panic. It’s bad though.
Yep, good Talk Steve. 2022 will be a rollercoaster for sure. Stocks valuations are at an all time high while at the same time we have the threat of inflation, rising interest rates and supply chain and productivity issues to deal with. Something is going to have to give. I think it will be the Markets that will have to correct. How much and when – who knows. Sanity hasn’t prevailed in this bull run and I suspect it wont prevail in a correction/crash. I hope everyone has their cash ready to jump in at the right time.
True . What isn’t high? Oil, gold , silver, housing, stocks, coins, Bitcoin, etc
My stocks have all tanked throughout 2021 small caps are decimated already
I’m patiently waiting. I want to get my first share in something, and hold it at the least
@ThaiT getting close to buy time for several areas now (not oil)
Maybe when SPY is 410 I will buy some . Waiting ..waiting and almost there. On the other hand the war or future war could drop it to 310 especially with Marxist Biden administration
Fed Chief Paul Volcker had to raise interest rates sky high to wrestle inflation just before Reagan’s second term. Will Powell have to do the same?
it took 10 years for them to get inflation under control last time. People acting like after 2 small dips inflation is already priced into the market.
I thought it was because people got greedy, selling everything at 4 times the cost, but not seeing down the road. Now, those same people can’t afford anything, and their money is almost gone. Save your money, forget stocks, forget buying anything for a while. Every company continues to raise prices because some idiots pay out of panic. There are recession proof ways to make money. Number one thing to do is not spend right now. I listen, I watch, I research. Look for yourselves.
Stocks needed a correction plus speculation on how the market will chain after covid and rate hikes.. just be prepared to buy when the new bottom is established.. if see your stocks crash bothers you, don’t invest in the stock market. It’s not a game for the weak hearted..
A 3 minutes accurate video to address interest rate hikes and essential missing elements in economy,
https://youtu.be/iNVmlFg-A9U
Well, our markets are designed around a model that are unsustainable in the long run.
So yeah, this crash is going to happen, and after that, again and again. More and more frequent.
There is only one way to solve this and that is to redesign the entire way the economy works from the ground up.
The economy is based on individuals, and in order for people work the most efficient their education must be good. Unfortunately education system is dominated by the government monopoly of Public Schools that consistently fail teach properly. Public Schools need to be abolished if we are going to have economic prosperity.
@D L Well, the education system is not functioning, but that is because of the economy. Abolishing public schools, would likely not help one bit. You need to see that academia is always a thing that costs money. The difference between a Harvard and a community college is simply the level of funding. Which in Harvard’s case is a considerable amount of private donations. Banning public schools or privatizing the education system will not help with the economy whatsoever.
The real big problem is that the global economy is stagnating. Capitalism is great, you can achieve a lot with it in a short time as evidently happened historically. It is based a few assumptions that are completely outdated, which we still use today. It’s based on the assumption that resources are infinite, which we are finding out they are not. This is why you see resource shortages, because we’ve been running overcapacity for too long.
Another mayor flaw is the free market, as our market is manipulated by people that only try to increase capital. So money isn’t a representative of resources, but has become a resource unto itself. Which is stupid because it’s not a tangible product. You also see companies hoarding money, you see individuals hoarding money. Money that is in stocks through investment firms that increases their already significant capital to monolithic levels. The problem with that is, the money doesn’t keep flowing. For an economy to be effective it needs to keep the valuta into circulation, if it doesn’t, it stagnates. And when the economy stagnates, it’s reflected in technological progress and cultural degradation, which we are also seeing everywhere.
It’s broken at it’s foundation, if we don’t think of something new, fast and implement it, we’ll go into permanent decline. Both societally, technologically and economically.
@Titant2 This was a great read, and I must ask, what is your association with history and the stock market? Is this a strong hobby, or is this part of your profession?
You SEEM credible. I kinda just wanna make sure you are. <.< Cause damn if that's true..interesting indeed.
@Titant2 All of this talk of a reset but it’s always vague. And I’ve researched it a lot. So much sensationalism I can’t find the truth.
And that is when the universal basic income will come in
Steve your video is great. Concise and to the point. People’s attention span has gone down.
raising interest rate to lower the bond value. raising the inflation rate to lower the dollar value. pay off the value less bond with value less dollars. get us out of the debts that we owe to other countries. what a smart move
I always enjoy your take on the US economy, Mr. Forbes. I am going to short the Long Treasury Bond. I’m wondering what you think of that tactic. It just seems to me that with inflation at 6% there’s no way that the long bond will stay just above 2%.
Great stocks and I just bought in on them, but I’m interested in making short term profit, let say turn a $150K to $500k in 6months, I’d appreciate tips on how what stocks to buy to make this much profit.
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Lmfao, if anyone could change 150k into 500k in 6 months, Jeff Bezos, Zuckerberg and Gates would triple their money every half year lol. Go with ETF SP500 and ETF with diverse world stocks, much more safe and long term almost guarantee good output
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