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. Thanks for the invite.
Brandy Auterson-Hurst:
So inflation numbers have improved recently. What are you looking at to understand how inflation might progress for the rest of the year?
David Nelson:
Well, it’s a big item as we all know. Inflation has really been an issue as far as over the last several years. It’s come down quite a bit, but what we’re going to look at today and talk about today is one big item that I think people need to be aware of, and it deals with as far as shipping costs and how much they’ve risen.
So let’s pull up the slide, and I’ll give you a little insight on this here. Essentially, what we’re looking at not that long ago was shipping costs for those big containers that go on those massive ships and goes all over the world, primarily coming from China, is if I wanted one of those, that was roughly $1,600 that I had to pay as far as to ship. Today, we’re looking at a much higher number, and this higher number is getting back almost to the levels that we saw after COVID and with the high inflation, roughly at $6,000 now instead of 1,600. So this is a big, big item, and the ripple effect that could transpire from this is what certainly has gotten our attention, and we’re paying a lot of attention to as far as trying to anticipate is this going to be an issue as far as down the road.
Brandy Auterson-Hurst:
Okay, so given the situation, what should investors be aware of?
David Nelson:
Well, I think the biggest thing is if this inflation starts ticking up, the Federal Reserve is going to be very limited as far as what they can do as far as cutting interest rates. And the stock market, and to some degree the bond market, has already factored in some pretty substantial cuts. So if that were not to take place and we didn’t see these cuts, we could see this market roll over pretty significantly.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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This video includes a paid appearance.