Inflation and your investments

Steve & Ted
Thursday, July 19th
Don Grant C.F.P. talks about the relationship between investments and the CPI.
00:08:02

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Even though it's kind of like a bad stuff going wrong. The most relevant. 713 thirty K innocent people anymore now. 647. Big big big men. Important releases its list of most valuable sports franchises. Dallas Cowboys at the top tier NCAA women's basketball tournament coming to Wichita had impressed by Katrina in 20/20 two. Which start couple's bodies found in Arkansas after they disappeared from fairgrounds near great bend if we make things even dead on K in as answer. Which caused gasoline prices this morning around 257. Gallons. It's roughly where the low end of them was yesterday's and no real change their 2:57 gallons morning. Traffic on K and SF signs at chambers. Sony. And hot today with a high near 100 degrees mostly clear tonight the overnight loaf. 73 Friday mostly sunny and hot tomorrow's night 98. Jane is has weathered the now it's partly sunny and 77 we have itself we just nine miles per hour. Case in as his brother brought you by the monarch featuring the largest collection of crap furtherance of his skis in the state of Kansas. Them on our coverage of military discounts for current and retired veterans the monarch in Toledo. He's 48 Stephen dead and as Stephen did hold question right there on our web page. It is his radio dot com you are invited to plug on him gonna be a part of the big excitement in the funds the question how much shopping do you do on line. None no 0%. Nobody said done Derek Miller. I have bought a thing or two on line 70%. I'd buy a lot of things on line 70%. Here and I'm by a couple of things in my vote lined up 33%. And about a couple of things a year online and also got 33%. And that's pretty exciting Poland Siva temple. Right there on our web page K and this is radio and I've come titillating stocks finished today mixed Wednesday. Adams industrial average up 79 points 2500199. ESP 500 also gained up six at 2815. Feel that NASDAQ Composite slipped slightly down just less than one point. At 7854. On Dow Jones Industrial Average plenty of winners including UnitedHealth American Express caterpillar travelers following. In fact when you add Boeing and united house together at that accounted for about 55 Dow points. Boeing meantime got a pop. Up about 1%. After one of three point nine billion dollar contract for Air Force One replacement planes tech stocks for the most part came under a little bit of pressure. Know a few of them did actually hit all time highs including Google. Amazon and FaceBook on the floor of the New York Stock Exchange and cool little babies Fox News. Stephen and more now 650 he done grant CF is my tracker needs talking about inflation. And your investments said creeping inflation it's up now to what 1%. Our national and and you have it. You know in spite of some Mike market gyrations led primarily by geopolitical. Bluster. More money cnn.com. Reports that investors are still positive on the immediate future of their stocks they say that. Investors are not concerned with politics long term there passing more with earnings in the economy. When the economy's humming along a potential threat. He could slow it down is inflation as you just mentioned. An increasing consumer prices to slow down spending that can affect the amount of goods sold creating them less demand which means less production and lower sales. The US measures inflation using a Consumer Price Index CPI. As CPI is the price of a basket of common goods and services. That are considered to be used by typical American house souls. How does that affect the value of stocks in news your 401K. In those funds. Well when you invest in stocks most often through an asset manager year actually buying. A long stream of future profits from those companies when you think about it the purchase price is the present value. Future profits will be affected by inflation. So the present value will be affected by projected inflation. The greater the rate of inflation the lower the present value will be. So when inflation is high or at least projected to be high current value of stocks drops or hold slow. On the flip side inflation could help the value of the stock. When prices are on the rise manufactures can sell their goods for higher prize simple example. When demand. For same muffins goes out. Prices rise even if the price of the primary ingredients raw ingredients rise profits of the Muppet baker will go up as well. Taking inflation into account meaning higher future cash flows will bring up the present value of the baking company. Investor perception of inflation and also natively affect the price of a stock. If investors fear that inflation is on the horizon because they are ignoring future cash flows and growing profits they may sell their positions which may bring down the price of the stock. Affecting other investors who hold that stock. Of course he gets a little complicated but I think you get the picture and if you have any questions you give me call the number 6342220. And I don't I don't pay enough attention to that what is our inflation rate now. Liveliest percent south to hear it's an hour on I I don't know exactly does this but it's been held. Pretty low historically low four for about a decade all on the net them over the in the seventies when it was up around 101112. 0% yeah images very bed it was eating at yeah I think the average hovers around three and a half like that. This is get to know your customer's day. And you're viewed Internet today archer. My customer care when businesses get all of your customers you'll get to know more about. Now what you need to grow. Okay popular words they're gonna tell you what they need in and you're gonna communicate with them and and everything will be fine. Yeah. Yeah we you know your cursory you have to you and your business I variety yet we absolutely have to know pretty Garcia has we're dealing with their livelihoods knows that sometimes you threatening the other 364 days of the year you don't get tonight. What I was the purposes. I guess it's since I don't really get to navigate as more and more or reminders that we know. It is if you know your customers better things will go a lot smoother for. Though sometimes though lately. Is subject you have customers just a big pain in the but to boot. And you rather than goes some place else I don't have many of those really done I love my customers good good relationships are good people. They're probably not being truthful and honest with you then they must remind our reliance. You know Milledge gets to know your customer's day. So they guitar whenever wolf thank you names for the advice. The and thank you now I just want to know whether it how many people are buying and stuff on line right W Rhode valuable information you valuable information that India and inflation are my investments is pretty says anybody who at least six that if I play into. Coming up at 7 o'clock. McCain is as poignancy to get another big basketball tournament coming to Wichita for years ago. I was stake coolest this week I've seen dead here on tape and assess.
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