![]() For someone in their 60s, let alone older, that can become a major financial crisis. Someone in their 20s or 30s may not worry unduly if their retirement savings plunge 30% in a market rout or an inflationary spiral. When we’re older we’re generally advised to keep most of our money in more “conservative” investments, meaning things like bonds, that involve less risk. That’s an especially key question for today’s retirees and those expecting to retire soon. If serious inflation really does hit, what can we do about it? How can we protect our investments? We’ll see.īut with all this talk I got to thinking about the obvious question. That’s higher than we’ve been used to for a decade, but it’s nothing to cause any significant alarm. The market sees five-year inflation running at around 2.6%. The bond market’s 5-year inflation forecast is now lower than it was in mid-March. On the contrary, they’ve been falling for two months. ![]() Had they continued there would be grounds to worry. Yes, the inflation forecasts were surging months ago, and hit 8-year highs. inflation rose 6.8% - the country's fastest rate since 1982, according to the Department of Labor.Readers may be excused for thinking something similar about the latest stories about looming, threatening, surging, terrifying inflation. If the optimism is warranted, the lofty prices you've probably noticed at your favorite small businesses could finally fall sometime next year. gross domestic product only managed to edge past its pre-pandemic levels in July.Ĭompared with the intense hardship that many small-business owners have experienced since the start of the pandemic, the prospect of increased consumer spending during the holiday season - and into 2022 - is enough for them to feel confident about the future, Sullivan suggests. The country's labor shortages and supply chain issues have persisted all throughout 2021, and U.S. That's for sure."Ī major reason for that optimism, Sullivan says: Perspective.Įven once the pandemic lockdowns of 2020 ended, small businesses struggled to recover. "I don't know any small business that isn't always worried, and that worry is certainly strongest when they talk about inflation," Sullivan says. Almost half said they've had trouble filling jobs amid the worker shortage. In the survey, published Tuesday, nearly two-thirds of respondents said they had to raise prices to account for rising inflation, and are expecting supply chain disruptions to hurt their businesses. The new levels of small-business optimism comes despite a bevy of economic challenges, especially during the holiday shopping season. It's this accordion economy of sort of stop-and-go and the adaptations required." It's everything from input availability, capacity, transportation, labor, it's Covid adaptations by ways of working adaptation. ![]() "It's enormous volatility in our supply chain. "It's not one particular type of volatility," Shane Grant, CEO of Danone North America, said. Earlier this month, a roundtable of CEOs from various sectors of the economy told CNBC that they only have one message: Except more economic volatility, regardless of the pandemic's status. "That glimmer of light … has given small businesses incredible optimism."īut other CEOs say unbridled spending feels premature. "You talk with small business owners who have been at the deepest and darkest hole - the pandemic - and there is this glimmer of light," Tom Sullivan, the Chamber's vice president for small-business policy, tells CNBC Make It. For many, that includes ramping up their hiring plans - even despite a nationwide labor shortage - alongside the official "end" of the pandemic, which medical experts expect sometime in 2022.
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