Germany is the 5th largest trading partner of the United States and the third largest exporter in the world. Inflation in Germany is running at 5.2% year over year so what can we possibly expect as an export from Germany only at higher prices?
According to TradingEconomics.com, pretty much everything! We’ve covered inflation in Mexico, South Korea, Brazil, Japan and the United States and Germany just adds fuel to the global inflation fire.
The trillion dollar question is whether inflation will become “contained” at some point or will it last through all of 2022 and into 2023? In either event, the prudent thing to do is to ensure you are generating extra/additional income from somewhere to make up for the shortfalls. The best place to do this is in dividend bearing investments, real estate or other instruments that can generate some income and potential appreciation.
If you haven’t already check out our inflation defensive portfolio, take a look. We aren’t recommending any stocks, we are just showing you how we are planning on investing to help deal with inflation. We are taking a few “nibbles” at the market taking starter positions in equities we think will work well in our strategy. We will increase our positions on major pullbacks and market corrections for the long haul.
Stay tuned….