“ For U.S. households, the best strategies to employ, according to McBride, are paying down debt, boosting emergency savings, and taking advantage of the market downturn.”
Pay down debt? Only if you are on fixed income, as your debt % will decrease as your income increases.
Boosting emergency savings? As those savings decline 18% per year?
Taking advantage of the market downturn? Sell now and hope you can buy cheaper later?
This is an argument to liquidate dollar assets and buy physical assets.
I’ve seen this movie before.
But there’s far more at play here than simply inflation.
The gas and diesel prices and supply chain issues are going to make getting goods more difficult.
Buying physical assets actually sounds like a plan. When mr. mm and I discuss whether we should buy something these days, it’s generally not a huge purchase and it’s something we really could use, so the philosophy is, we have the money, the product is available, for now, and the money is still worth something.
Might as well get it while it’s still available and we can afford it.