Brandy:
It’s now time for, For Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you. A pleasure to be here.
Brandy:
So recent headlines are suggesting that we may have seen the peak in inflation. Is there anything in particular viewers should be paying attention to as they try to assess that?
David Nelson:
It’s a big item. Inflation, as everybody knows, it’s watching the market as far as the last month or two, it is having a significant impact, but there’s a variety of reasons. And I think the headline year over year inflation numbers are actually crucial. And the good news is that the second half of 2022 this year, we think we’re going to see them drop pretty substantially. Most of it stems from last April through June, where the biggest increases and as those roll off in the 12 month rolling, it should subside quite a bit. Something that doesn’t get enough attention as far as in our opinion, is the customers spending. And I brought along a chart illustrating the durable goods versus services. They run in sync with each other pretty consistently year in, year out, but we see this explosion of the blue line and that’s the durable goods, that it actually took off in a big, big way while services during COVID have dropped quite dramatically.
Brandy:
Okay. So how might we see this shift impact the economy and financial markets?
David Nelson:
Well, demand destruction is a significant item and certainly higher prices have reduced demand. Individuals that are hoping for that this thing is going in quickly. I guess I’m talking specifically about the impact of inflation on the markets. You’re probably going to have to be very patient. We’ve talked about this for quite some time. We’re still in the same camp. This thing could get a little worse before it gets better.
Brandy:
All right. Patience. David, thanks for joining us.
David Nelson:
Thank you.
Brandy:
So if you missed any of our discussion, we’ll make it available for you on ourquadcities.com