From the archives of TGIF 2 Minutes – with updates, including perhaps why the US Federal Reserve is taking longer to start lowering interest rates…
“Mommy, Why are you buying our food at Walmart?”
…”Daddy, Why are we not eating my favorite fancy meals and brands of food?”
It is not quite Chef Boyardee and Ramen Noodles yet, but there is data reporting higher-end households shopping at lower-priced food stores (i.e. Walmart).* There is a lesson for kids and adults here. First a few more details.
On the lighter side of matters…. and please CLICK THE TINY ARROW BELOW.
Champagne & William Shatner from Kerrie Debbs on Vimeo.
Back in 2021, William Shatner – at 90, who knew?! – became the oldest person to achieve space flight. Completion of a 10-minute journey on the reusable New Shephard rocket, including four minutes of weightlessness, was cause for a major celebration immediately afterwards. But notable was that upon disembarking from the space capsule Shatner politely turned down taking part in the champagne spray shower amongst the crew, Blue Origin promotional people and members of the press.
A brief personal reflection this week but meant to factor in to short-term and long-term personal and family financial planning.
In the past week I was given sad news of the sudden and far-too-soon passing of not one but two old friends. Both were in the prime of their lives with spouses and young children, working and doing good in their families, workplaces, communities, and faiths. Certainly, the last thing on my mind was writing a TGIF 2 Minutes edition about these two people.
But upon further reflection on their lives, it was too compelling not to make a statement about YOLO, or You Only Live Once, and the spending on the YOLO category. I am not certain, but it is likely that these two people lived full lives with few if any regrets. In this light, there is a strong case to be made to figuring YOLO into a budget.
Looking for Doritos at the supermarket? That may be difficult at certain grocery chains where the chips are being pulled from shelves – so far only in several European countries.* The reasons? Partly, to protest possible “shrinkflation”, that annoying occurrence of a company lowering the amount of product in its packaging but charging the same price (which also could be called a “rip off”). Another reason the grocery chain is choosing not to stock Doritos and several other PepsiCo products is persistent and unreasonable price increases by PepsiCo.
Apparently, consumers and certain supermarket chains concerned with holding on to customers, have had enough with price increases, especially on discretionary items (are Doritos a staple or discretionary?). The move by the grocer Carrefour could be a positive development for consumers in early 2024. What else would consumers, investors and savers like to see in 2024?
Long-time TGIF 2 Minutes readers know that “The Greatest Chart Ever” truly is a great chart* with data illustrating reasons to invest – and stay invested – in stocks for the short-, intermediate- and especially the long-term. The chart focuses on US stocks, namely the S&P 500, and lends to globally diversified stock investing as well.
Quick trivia: Who is famous for the saying, “It’s only when the tide goes out that you learn who’s been swimming naked”?? Ironically just last week Warren Buffett’s 58th annual “Letter to Shareholders” was reviewed by TGIF 2 Minutes, and, yes, Warren E. Buffett first famously uttered these words back in 1992.
The timing of his utterance was, as CEO of the insurance conglomerate Berkshire Hathaway, just following Hurricane Andrew when the inadequacies of the insurance industry were negatively exposed. Buffett was describing “the rosy appearances that can mask financial recklessness until the good times end.”*
More and more lately, perhaps as a result of the post-pandemic world, I am being asked for basic financial advice – from both young people AND those in the over-55 crowd. By the way, the over-55 crowd who ask this question are typically wealthy with comfortable lifestyles. The basic financial advice they seek includes the question, “Are we OK financially?”
A handful of smart people ask for further definition of “OK” and then ask the same question, “Well then, are we OK financially?” The answer comes down to super-basic elements, and thus today’s short edition of TGIF 2 Minutes.
“Mommy, Why are you buying our food at Walmart?”
…”Daddy, Why are we not eating my favorite fancy meals and brands of food?”
It is not quite Chef Boyardee and Ramen Noodles yet, but there is data reporting higher-end households shopping at lower-priced food stores (i.e. Walmart).* There is a lesson for kids and adults here. First a few more details.
Inflation is no joke; and can be the great equalizer. For even the highest-earning households, nearly everything is more expensive. Namely, food. In addition, during the pandemic households became accustomed to ordering out for food and meals, taking delivery, and cooking at home less. For those households who chose to cook at home more often, the ingredients were and are now often delivered or shopped for by a “shopper” and picked up curbside at the grocery store or delivered to the doorstep. Food and service costs have skyrocketed (partly the result of further increases in wages for basic hourly workers).
Continue reading “Challenge: Teaching Inflation to Kids (& Adults)”
Hurricanes can come in various forms. Whether they be the recent Ian and Nicole or the staggering Sandy of 2012 they tend to strike in the fall season. Also, in the fall come U.S. elections and historically a bit of stock market volatility. Like the weather, markets are anything but predictable. Elections can lend themselves to predictability but there are always surprises too.
This year has had a mix of all these factors. Currently amidst high inflation the stock and bond markets are trying to digest an environment of much higher and increasing interest rates – exactly how much higher is an unknown. Also unknown is the post-election reality of future policy making in Washington, DC. Interest rates are “driving the economic bus” for the time being, and government policy making will be an ongoing force running alongside. Both will affect the markets in positive and negative ways over time.
Getting through hurricane season can be a relief – but only if it is known that the storm is over. Is the storm over or getting close to being over, and where does all this leave investors and savers?
The subject of family can apply to various aspects of financial planning. And although sensitive, there could be an entire TGIF 2 Minutes series on family and personal finance. On a positive note, and more specifically for this week’s edition: I hear often from financially comfortable – and confident – clients and friends about basic, treasured personal financial advice they received from a family member – most going back 20, 30, even 40 or more years ago!
Mixing family and money can get sensitive quickly. But over years of observing, there have been far more positives than negatives for those who were willing to step back, look at the bigger picture and accept solid, basic advice. Humility was involved. Patience is necessary. These are not my opinions but rather real pieces of feedback from people who are grateful they took certain, basic advice from a wise family member at some point earlier in life.
