Inflation at 9.6%, according to my broker

AMDG

Inflation numbers came out today: 9.6%! That’s almost as heavy as my newborn son (9.2 pounds – delivered normally. Kudos to the Missis). Another similarity between inflation and my son: both are going to be taking money out of my wallet. One difference: unless my son grows up to be a thief, inflation takes away money from EVERYBODY’S wallets. Rich or poor, young or old, man or woman. It’s like a shotgun: indiscriminate and just blows away anything that’s in front of it.

It’s bad enough that inflation’s going to pick at my wallet, it’s also going to crush demand and bring up production costs, in effect killing business, dragging down the PSE and slowly bleeding my already-anemic portfolio.

Markets already went down heavily two days ago and traded cautiously on the negative side yesterday ahead of the inflation numbers coming out. That’s not much of a wonder considering people have been talking about inflation to be at double digits since last week. I haven’t checked the PSE yet, but I wouldn’t be surprised if we see another 1++% dip in the index today.

How long will the market malady last because of the latest inflation numbers? I can’t say. I think the more important question is, How long will this high level of inflation go on? As long as inflation remains as high as it is, there’s very little chance the PSE can find the momentum it needs to break the 3,000-point mark, much less reach 4,000 points.

I have recently considered selling some of my holdings to transfer to other stocks, or just to hold on to the cash until prices bottom out. The problem of course is that trying to outsmart the market on a short-term basis is very tricky. It takes a lot of skill and time devoted to studying. Unfortunately, with a nine-to-six grind and two kids to take care of when I get home, I do not have the luxury of time that I could spend studying charts and market trends on a daily basis (I still haven’t even finished reading some of the annual reports of the companies in my watchlist). So for me, it’s just average down when I have the money and watch my portfolio bleed when I don’t while I listen to my son cry and my daughter sing ABC and Happy Birthday at the top of her voice while running around our bedroom. All of that while hoping that the decisions I made based on sober research when I first bought the companies I’m into now were accurate. Yes, yes, my life is glamor galore.

My consolation: in sixteen years, my son would be in freshman college while my daughter will be in her junior year. By then, I could possibly retire from my nine-to-six (at a tender age of forty-four) and my portfolio would be so big (hopefully!!!) that I could consider myself filthy rich. Then I’ll spend my time taking photographs, planting trees or propagating coral reefs, riding my mountain bike (that I still have to buy), scuba diving, working for NGO’s with environmental or grassroots livelihood causes, traveling and resting.

Hey, if you’re dreaming, you might as well dream big, right? Ok, now I have to stop typing and get back to work.

Peace out!