Inflation, Liquidity and Innovation

This week on the video blog, Jonathan talks about how social change, ideation and innovation drive business profitability, and in turn, inflation, which is why your wealth strategy needs to be long-term focused.

Good morning,

This is Jonathan Satovsky of Satovsky Asset Management, August 20th, 2020.

Today’s video blog update is on the topic of ideas, innovation and inflation. This week, the Democratic National Convention had kicked off and there’s a lot of ideas thrown about to grip the hearts, souls and imagination of cultures to decide the direction of our country in November. Additionally, the Federal Reserve had met this week and talked about the tenuous nature of the economy and unemployment and the like, and the need for liquidity to be able to make sure that the economic engines keep running.

There are ideas thrown out all over the place, but it is a question not of the ideas but of the execution of the ideas. There is a lot of innovation that’s been happening, and liquidity has provided an opportunity for tremendous innovation, and enabling people to move forward. And what that does is, in spite of the fact that people have a perception of what is safe and what is risky, that short term sense of safety and stable, calm waters like you see behind me, runs the risk of people outliving their money because of something called inflation.

A lot of innovation and a lot of progress happens in culture and society, and long term, creates rising cost of living over the next 20, 30 years. So, in order to protect something for a lifetime of abundance, the safer asset to own is an ownership stake in businesses and equity-oriented assets over the perceived stability and safety. And, that concept is not new; that idea and innovation is not new. It’s the execution of that idea in a sustainable and a persistent way, regardless of the choppy waters that takes emotional intelligence, EQ over IQ.

So, with that have a great rest of your August, enjoy the beach and celebrate the choppy waves each day.

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