The “Everything Shortage”: Why Is Everything So Expensive & Out Of Stock? | Wolf Richter

The disruption the pandemic has inflicted on global supply chains is really starting to harm consumers.

Prices for most items are up double digits in the past year. And product shortages are rampant these days.

How much longer is this pain for our pocketbooks likely to last?

The world has been watching prices rise dramatically this year across nearly all asset classes — in large part caused by the $trillions in monetary & fiscal stimulus flooding into the economy as well as the disruption of global supply chains caused by the COVID pandemic.

But not only are consumers experiencing rising prices at the store, they’re increasingly finding empty shelves, too.

On the supply side, things have become so bad that today guest expert, Wolf Richter, has coined the term “The Everything Shortage” to describe the era we’re now entering.

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There’s no doubt that it’s a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?

Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.

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