RG 290 – 2021 in Review: Inflation, Supply & Demand, Market Changes, and More With Reed Goossens
What a year 2021 has been! We are closing strong with a review of this year from an investor’s perspective, done by yours truly.
The pandemic has put us all through a massive rollercoaster of a year. People have lost their livelihoods, loved ones, and their normal lives. Bringing with it significant changes in the market, the “pandemic inflation” has also made life harder, especially for low-income families and individuals.
In this episode, I share my insights on the most important aspects of the pandemic inflation, including its effect on the supply chain, wages, migration, and cost of housing and living. Moreover, we go over the pandemic’s effect on investor behavior, which will perhaps be the most interesting topic for everyone listening in.
The pandemic has caused major shifts in the market, which is why I want to talk about my observations on current deals in comparison with normal times to help my fellow investors tread carefully during these volatile times. So, buckle up, put on your headphones, and let’s go over 2021 together!
Limited supply increases the price, which trickles down to everything else.
From a factual standpoint, the pandemic has caused the rich to get richer and the poor to get poorer.
When people move to less expensive areas, they bring in large amounts of money. This results in a large influx of population, and thus a rise in the cost of living.
- The more people that want to buy homes, the higher cost of housing and living costs—even in bigger cities.
- During inflation, investors want to put their money in hard assets—including real estate.