Remember, the only choice is optimism, the pessimists never get it right.

As the attached article states, “The surge in prices in April was a shocker”. I’m not an economist but some of the increases seem to be a one-off increase. Remember, last March the globe was shutting down, so any year-over-year report is obviously going to be skewed. And supply chain disruptions that could take months to settle will add to the price increases. But some of the increases in prices could be structural due to what could be changes in behavior. It’s hard to go anywhere without seeing a hiring sign in business windows. Also, consumer consumption habits and work patterns have changed.

What’s all this mean? Right now, we’re a long way from the inflation of the late 70s and early 80s. With the 10-year treasury interest rate still at 1.6 -1.7%, when compared to the S&P 500 dividend rate and tons of cash sitting on the sidelines, all of the U.S. equity indexes are still close to all-time highs. This week’s 1.4% drop in the S&P 500 should come as no surprise.

Regret seems to be a way of life. We all have them. What tops the list this year is a little surprising at first blush. But, when considering what we have lived through for the last year+, is not surprising.

When an emergency fund exists, economic decisions become much easier. It helps provide cashflow when current sources are temporarily disrupted. Whether it’s just a credit union savings account or the cash values of life insurance policies doesn’t matter as long as it’s liquid and available.

Because of an extension today is income tax filing deadline date. When I see what’s going on with our tax money, it makes me cringe. However, we still live in a free country (sort of) and we’re not in a 100% tax rate environment. Jean & I almost always have a celebration whenever this deadline comes around.

As always, should you have any questions or wish to talk or get together, please just email or call. Now, let’s all go out and help make someone’s life better.

Doug Alden

Link to article one…
Link to article two…

Office 828.668.0665
Cell 828.713.4602

doug@theliberatedinvestor.com

PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

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