Today, we note that despite a strong economy with very low unemployment, measures of consumer sentiment and overall confidence levels are lower than one might expect. Prices are still much higher than they were before the recent inflationary period because of the way that high prices get “built in” when a bout of inflation occurs and “built on” when inflation returns to a more normal/lower level. There is also certainly a negative psychological aspect of inflation that influences consumer behavior and expectations.
In this episode, we sit down with John Crawford, IV, CFA, our Managing Director of Equity Investments to discuss how this mental accounting of the overall price of things we consume is at least partially why increases in the costs of goods and services evoke such a visceral response from consumers and business owners, not to mention the media. In addition to being available on our website, we are pleased that our podcasts are available on Spotify, Apple Music, or wherever you get your podcasts.
Please reference our related Perspectives post for more detail:
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