USOI - Why Is Inflation So High Right Now? 6 Reasons And What Happens Next

• The war in Ukraine will likely pour more gasoline on the already raging inflationary fire, threatening to send the global economy into stagflation. Stagflation is a slowdown of economic activity caused by inflation.
• Over the last 20-plus years, every time the economy stumbled, Uncle Fed bailed it out - he lowered interest rates, injected the market with liquidity, and the economy and market were back to the races. Today, to prevent inflation turning into hyperinflation, the Fed will have to do the opposite - it will be raising rates.
• Some of the stocks that are crashing today are bad businesses, while some are mediocre and some are excellent. A massive change in sentiment usually waters down the distinctions between them.
• Our job is to carefully go through the wreckage and identify great businesses that are trading at great prices (with a significant margin of safety).

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