"To a certain extent, I think there are demographic reasons for inflation (mostly younger folks forming families and being forced to spend more money than they may otherwise like, allowing for greater pricing power from large corporations). But with even more power concentrated among the largest companies today than before, inflation and other concerns seen a generation ago appear to be playing out in a similar way today."
"I think the most relatable saying many investors can understand and be on board with is "time in the market beats timing the market." Of course, the rise of exchange traded funds (ETFs) and other products which allow investors to be the market instead of trying to beat the market have allowed for greater portfolio diversification and impressive returns in recent decades."
Investing has experienced repeated cycles over decades, affecting different generations differently. Millennials primarily experienced the great financial crisis and the pandemic, while baby boomers weathered the 1970s inflation and 1980s crashes. Demographic trends, such as younger adults forming families and increasing consumer spending, contribute to inflation and strengthen corporate pricing power. Market power concentration among large companies amplifies historical patterns. Historical periods produced mediocre returns and notable crashes, yet a consistent investment principle remains: sustained exposure outperforms market timing. Exchange traded funds and similar products enable diversified, long-term market exposure suitable for investors seeking to endure cycles.
Read at 24/7 Wall St.
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