Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money, we’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
So, inflation seemed like it was finally cooling off, is that still the case?
David Nelson:
Yeah. Yes and no. So, it has been cooling quite a bit as far as over the last couple years, and I brought a chart along today, again, these visuals hopefully help people digest this a little bit better. And the chart that I brought along is basically looking at what’s called the core PCE. And it’s the preferred measurement that the Federal Reserve uses as far as to try to see accurately as far as what’s actually taking place. And if we look over the 2010s era, so this chart’s going back quite a number of years, but during 2010s, inflation was pretty much under control. And that’s that dotted line there, the yellow dotted line, and that’s 2%, that’s the goal that the Fed would like to see inflation around that. And we had that big spike, that was, we had COVID and inflation spiked up to 5%.
Then, it got back closer to 2%, and just recently we’ve seen it pop back up a little bit. We’re talking about 3.6% as far as where we find it today. So, this is an important area, obviously for people’s pocketbooks, and we’ll keep a close eye on this because this is a really, really important item, and again, is affecting each and every one of the folks out there.
Brandy Auterson-Hurst:
Definitely. So, what should people take away from this?
David Nelson:
Stay diversified as far as your investments, because certain investments do better when inflation is moving up versus moving down, and again, I would just caution people as far as to just be prepared. We’ve got some rocky times as far as that we’re living in right now.
Brandy Auterson-Hurst:
All right, David, as always, thanks for joining us.
David Nelson:
Thank you.
Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.