Welcome back to Vertex Insights. Last week, Elon Musk made waves in the social media world by taking a major stake in the shares of Twitter. Twitter is a social media platform that many feel has overstepped the bounds with censoring and not allowing free speech on their platform.
Elon Musk is a lightning rod. And we expect this to be something of an interesting journey as he is now one of the largest shareholders in the company. But that's not what we want to talk about today.
Did you know that April is financial literacy month? That's right, we get the whole month dedicated to financial literacy. So, in the spirit of financial literacy, we're going to talk about inflation. As you know, inflation is a silent killer of wealth as it erodes your purchasing power over time. It's like compounding. But in reverse.
Imagine you put $100 in a savings account. And we have an inflation rate at 8% annually. A year from today, that same $100 has 92 cents of purchasing power. This is why, as you might imagine, many people are very, very concerned about the impact that inflation is going to have on our economy, not in the short run, but also in the long run.
You can also understand why the Federal Reserve is very interested in getting the rate of inflation under control. This week, we're going to see some key inflation numbers. Tuesday, we will see CPI which is the consumer price index. Wednesday, we will see PPI producer pricing indexes, and then Friday, we will get to see the University of Michigan's consumer sentiment inflation index, which will give us an idea of what consumers are thinking about inflation and whether or not they're predicting it to be here for a long time.
So, in the spirit of Financial Literacy Month, think about how inflation impacts you personally, because just like taxes, inflation can be felt universally but it's also experienced individually. So we want to think about how inflation is impacting you and your household and your balance sheet. How are you making adjustments? Do you need to make adjustments in the short run? Also, are you comfortable with inflation being higher in the short run, because you believe that it will eventually revert back to its lower long term averages? These are questions you should ask yourself, and if you need some help, don't hesitate to reach out to our team.
Michael Baker and Ross Marynell are investment advisor representatives of Advisory Alpha LLC, an SEC registered investment advisor. All opinions expressed by Michael and Ross or their guests are solely their own opinions and do not reflect the opinions of Advisory Alpha. This recording is for informational purposes only and should not be relied upon for investment decisions. All third party ratings are date stamped at the time the rating was given ratings that are dated prior to January 1 2022 may not reflect the current offerings or services of the financial advisor and should be disregarded if found inaccurate. amazon.com allows the issuance of ratings in the ordinary course of business through the use of this site. No compensation was provided directly or indirectly by the advisor in connection with obtaining or using the third party rating.