Alot of you have asked about inflation. And the economists will say there really isn’t inflation because even though the government is printing money, the banks are not lending so you don’t have the multiplier effect.
But let’s face it there is a recovery and there is supply side inflation – think about some of the things that have become a lot more expensive or in short supply. That causes inflation.
Our analyst Neil Saft came up with a list and some of the things are quite interesting.
- There’s a shortage of aluminum so therefore Diet Coke and beer are in short supply.
- There’s a shortage of yeast
- There’s a shortage of Boba for bubble tea, and the United States is not getting Boba from Taiwan
- Canned corn – is only harvested once a year – there’s a shortage
- Cat food – people have more cats, people are spending more on cat food, people are spending more time with their cats – therefore there’s a shortage
- Ketchup packets- people are ordering out more – hoarding the ketchup packets – there’s a shortage
- Board games – they’re all sold out
- Nintendo switches and X Box
- Toilet paper
- Rubber due to a shortage of production
- Hot dogs and bacon – it’s probably not a big deal for most of us but it is for some.
So these are some of the things in short supply to think about. There is some inflation – for everybody it’s different.
Norman H. Chait, CFA, Managing Principal, Nardis Advisors LLC,
Neil Saft, Nardis Advisors LLC
April 19th, 2021
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