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Free registration at the forum removes this block.Price of the milk has gone up 50% this morning, plus the size was reduced for 1 Litre to 950g.
View attachment 38796
Transitory.View attachment 38855Here is some real life shrinkflation directly affecting me. Same price 8oz less. This jug used to be 64 oz two years ago.
It doesn't work for everyone, but a great option to realize your equity is to sell your house and rent an apartment until the housing market goes back down.
Who knows how long you'll be waiting though.
I think it’s because with low rates, average salaries can afford to borrow to get into these homes. Once you start getting in the $1m+ you still need a decent salary to get into them.
Here in New ZealandI believe we are witnessing a massive hyperinflationary event underway as prices continue to skyrocket in all asset classes. Of course, this doesn't happen in 1 day or 1 week, but over the course of a year or two.
Meanwhile, the Fed continues to say inflation is under control.
I've extracted some of the posts from the other INFLATION thread -- please use this thread to POST YOUR EXPERIENCE in your area/country/city of higher prices.
The mainstream narrative is that inflation is under control -- I contend that it is running in the double-digits and as always, the media and their sycophants are lying.
Of course, if you have a local experience of LOWER PRICES, feel free to post that too.
The only place I've found lower prices are in consumer electronics like televisions. Got make that propaganda easily accessible!
Awesome words of truth! Thanks for being honest and brave for the “so many times can’t count them” time!I believe we are witnessing a massive hyperinflationary event underway as prices continue to skyrocket in all asset classes. Of course, this doesn't happen in 1 day or 1 week, but over the course of a year or two.
Meanwhile, the Fed continues to say inflation is under control.
I've extracted some of the posts from the other INFLATION thread -- please use this thread to POST YOUR EXPERIENCE in your area/country/city of higher prices.
The mainstream narrative is that inflation is under control -- I contend that it is running in the double-digits and as always, the media and their sycophants are lying.
Of course, if you have a local experience of LOWER PRICES, feel free to post that too.
The only place I've found lower prices are in consumer electronics like televisions. Got make that propaganda easily accessible!
But they are thicker than ever before!Here's a recent example of shrinkflation.
I just got toilet paper at Costco.
I still had a package of the same brand of TP that I bought before the pandemic. So I was curious to see if they had changed anything about it.
Yep.
Feb 2020:
Price: $16.99
Rolls: 30
Sheets per roll: 425
Total square feet: 1593.7
July 2021:
Price: $16.99
Rolls: 30
Sheets per roll: 380
Total square feet: 1425
View attachment 38999
45 fewer sheets per roll, and 168 fewer total square feet.
Interestingly, they've managed to make the package look about the same size. But you can tell that the rolls in the top package are stuffed so full they're like rounded squares, while in the bottom package, they're just round circles.
Unfortunately not.Is there a simple anti-inflation investment if you have some extra money you don't plan to spend for a few years? I found the TIPS ETF which seem inflation-nullifying, but I think they are otherwise just a market index. It seems like the market is high, so I was afraid to put too much money in it. I guess there isn't an instrument that nullifies everything if you are willing to give up gains. For example, I think the TIPS goes up with inflation, but only keeping pace with it, not making a profit more than the inflation itself.
Or real estate...Unfortunately not.
The best tools to fight inflation on your $$ is stocks/bonds. They also don't historically beat inflation, BUT as long as you keep it in through the ups/downs, the frenzies and bull markets end up making up for times of inflation/stagnation and crashes along the way. This is exactly why the markets are still going crazy even through economic turmoil. Where else are you going to put the money? You've got nowhere to go. So you put it in the shitty , but historically best option.
Kind of. Real estate on average is barely better than inflation. If you include renting out your real estate, thats now a business in itself and not just investing your money. I think we all agree business is the best!
And the stock market is a big gamble. Since the 1990s when the Saving and Loan/Thrift industry failed, the bond and stock market have taken over RE financing. We'll see how that all works out. Several segments of the RE are teetering on the brink of the great abyss. There's no known history to guide the way out of the danger. There are fewer shares of stocks on the market now than in the past -- with a lot more money chasing them causing price inflation and unrealistic PEs. I'm not sure there are safe harbors around right now. So, my path is run lean and mean. That means seriously managing known risks; doing debt management through pay downs and no new leverage; controlling expenses as much as possible; making sure that I have an adequate emergency fund; watching the markets like they were my own kids; keeping my ear to the ground for changes in direction by the human herd...Kind of. Real estate on average is barely better than inflation. If you include renting out your real estate, thats now a business in itself and not just investing your money. I think we all agree business is the best!
Kind of . I am talking about index funds like VTSAX or S&P500, not individual stocks or small funds. Past performance can't guarantee future performance but data of 100+ years is as good a guarantee as you are gonna get. It's at minimum no less of a guarantee than predicting real estate either. Every single boom and bust there are people that say its different this time. To their credit, IT IS different every time, but it always ends the same. A boom that goes for an unpredictable length of time, then a bust, which is followed by a boom again. Human ingenuity continues and the economy rebounds and grows. The next best thing to owning a business is having a steak in others businesses! As long as your time horizon is decades and you don't need your investment money tomorrow, history shows that it doesn't matter what the market is doing. Even putting in money at the worst times in history (lets say bottom of great depression) leads to a positive portfolio in real terms 10 years later and a spectacular one decades later. If the stock market doesn't keep growing over the long term, we have much more serious issues and your real estate bet aint worth it's weight either.And the stock market is a big gamble. Since the 1990s when the Saving and Loan/Thrift industry failed, the bond and stock market have taken over RE financing. We'll see how that all works out. Several segments of the RE are teetering on the brink of the great abyss. There's no known history to guide the way out of the danger. There are fewer shares of stocks on the market now than in the past -- with a lot more money chasing them causing price inflation and unrealistic PEs. I'm not sure there are safe harbors around right now. So, my path is run lean and mean. That means seriously managing known risks; doing debt management through pay downs and no new leverage; controlling expenses as much as possible; making sure that I have an adequate emergency fund; watching the markets like they were my own kids; keeping my ear to the ground for changes in direction by the human herd...
Uncertainty is sure in the air.
I wasn't saying that RE is superior to the stock market. For you, the stock market may be the cat's meow. For me, RE is just less risky since that's the world I really, really know.Kind of . I am talking about index funds like VTSAX or S&P500, not individual stocks or small funds. Past performance can't guarantee future performance but data of 100+ years is as good a guarantee as you are gonna get. It's at minimum no less of a guarantee than predicting real estate either. Every single boom and bust there are people that say its different this time. To their credit, IT IS different every time, but it always ends the same. A boom that goes for an unpredictable length of time, then a bust, which is followed by a boom again. Human ingenuity continues and the economy rebounds and grows. The next best thing to owning a business is having a steak in others businesses! As long as your time horizon is decades and you don't need your investment money tomorrow, history shows that it doesn't matter what the market is doing. Even putting in money at the worst times in history (lets say bottom of great depression) leads to a positive portfolio in real terms 10 years later and a spectacular one decades later. If the stock market doesn't keep growing over the long term, we have much more serious issues and your real estate bet aint worth it's weight either.
Volatility is high, but volatility doesn't mean risk in actual loss. Just temporary fluctuations. The key is only to use money that you don't need to touch for 10 years or longer (or have a calculated withdrawal plan ahead of time). If you can't stomach temporary low's then the market isn't for you. But then I have no idea what you can do with your money to prevent it being eaten alive by inflation. Real estate also comes with risks and volatility. Wait till the idiots in charge decide rent control everywhere is great or the CDC declarers a public health emergency on poverty and does another eviction moratorium lol
Gotchya. Seems like we are on the same page. The best is what you know and are comfortable with, thats for sure! Most people, including myself, have no real experience with RE so we would be going in blind. I answered the posters question with the assumption that he doesn't already have good places to put the money into (like strong RE experience or a business needing investment).I wasn't saying that RE is superior to the stock market. For you, the stock market may be the cat's meow. For me, RE is just less risky since that's the world I really, really know.
This is my 5th business cycle, so I have a different take on it. Yes, it looks and smells different each time. But, if you scratch it, the unlying elements are eerily similar. The boom/bust cycle in the single-family housing market is SO familiar. It feels like the early 2000s and the run-ups that came before that bubble. The problems in the office space market feel like the 1990s. The inflation bump is shades of 1980. I believe that history repeats itself over and over, just wrapped in different clothes.
Based on all this experience I’m just wondering what you are doing/suggest doing right now?I wasn't saying that RE is superior to the stock market. For you, the stock market may be the cat's meow. For me, RE is just less risky since that's the world I really, really know.
This is my 5th business cycle, so I have a different take on it. Yes, it looks and smells different each time. But, if you scratch it, the unlying elements are eerily similar. The boom/bust cycle in the single-family housing market is SO familiar. It feels like the early 2000s and the run-ups that came before that bubble. The problems in the office space market feel like the 1990s. The inflation bump is shades of 1980. I believe that history repeats itself over and over, just wrapped in different clothes.
I did a lot of debt reduction and consolidation while the other RE investors were into leverage. I tried to tell them about 1990, but they couldn't hear me. They were neck-deep in their systems. They countered that I really didn't understand RE and how to make money. I ignored them and went right on with preparing for the next cycle.Based on all this experience I’m just wondering what you are doing/suggest doing right now?
Just ride it out and hold on through the bust or sell now and watch your money deflate for a further unknown length of time
Stop drinking milk then makes you weak anyway, hahahaa!Price of the milk has gone up 50% this morning, plus the size was reduced for 1 Litre to 950g.
View attachment 38796
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