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 John Nelson, Financial Planner at NelsonCorp Wealth Management. Welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
Inflation has certainly seemed to have slowed over the past year. Could you share what you are watching on this front?
John Nelson:
Yeah, it certainly has. We’ve seen a significant drawdown from where things peaked in ’20 and 2021 when COVID struck. The chart I brought with me today is global supply chain pressures, and what we’re seeing here is the big spike, and then a lot of giveback in 2022, where things actually bottom out lower than where they were before, so this is an area we’re watching very closely. The last six months, where that yellow line’s pointing out, we’re starting to see some supply chain tightening, things changing there in a pretty significant way. It’s now a question of, is this just normalizing from the lows that we hit, or is this a trend that we need to watch more carefully that could impact the markets?
Brandy Auterson-Hurst:
All right, so how could this impact viewers’ investment decisions?
John Nelson:
Yeah, I think a lot of investors have gotten complacent from the standpoint of inflation is under control, supply chains are a thing of 2021, and not really in focus. But I’d say, supply chain tightening, what we’re seeing right here, as well as the direction of the Fed going into the remaining part of this year, are key areas that we’re watching closely. And if we see this as more of a long-term trend where supply chains are indeed tightening, that could certainly change the dynamic and the positioning of the Fed going into the rest of this year.
Brandy Auterson-Hurst:
All right, John. As always, thanks for joining us.
John Nelson:
Thanks so much Brandy. Appreciate it.
Brandy Auterson-Hurst:
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