Inflation is one of the biggest threats facing the economy. This is evident by looking at public polling, consumer sentiment, recent earnings reports, and statements from government officials.
About 80% of companies that reported earnings in Q3 cited factors like supply chain challenges, the difficulty of finding labor, and rising costs in their conference calls. This is a sharp contrast to the last decade when the biggest challenge was deflation and low demand. Investors will certainly have to adjust their approach and strategy in order to profit in this environment.
