Inflation Explained for Dummies

In episode 7 of Don’t Buy The Bull, Cassandra Toroian dives into the world of investing, discussing recent events such as Donald Trump's case in New York, NVIDIA's earnings, and the impact of inflation on consumer prices. She also shares insights on the future of AI and its implications for human thinking.

Tune in as she provides valuable information and encourages listeners to think critically about the information they receive.

TIMESTAMPS

[00:03:19] Consumer Pinch Due to Inflation.

[00:07:16] AI and Human Originality.

[00:10:31] Not to Buy the Bull.

QUOTES

• "So next time somebody tries to convince you that inflation is going down, please correct them. Please correct the record.”
• “People need to take vacations and they're talking about the price of oil supposedly is not going to go higher, despite the fact that we've been depleting our oil reserves to keep prices low and can't really do that anymore. And so, that's going to affect people's travel plans for the summer. Regardless, again, because the rate of change in the price of gasoline may not be as high, but gasoline itself is still much higher than it was in 2021. So People are not traveling abroad quite as much.”

SOCIAL MEDIA LINKS

Cassandra Toroian

Instagram: https://www.instagram.com/CassandraToroian/

Facebook: https://www.facebook.com/CassandraToroian1/

LinkedIn: https://www.linkedin.com/in/cassandra-toroian/

WEBSITE

FirstHand Research and Consulting LLC: https://1sthandresearch.com/

Don’t Buy The Bull: https://dontbuythebull.io/

Transcript

Welcome to Don't Buy the Bull, a podcast dedicated to unmasking the truth behind how so-called trusted Wall Street institutions and the American government really work. I'm your host, Cassandra Tourian. You can call me Cass. I'm a seasoned former equity analyst, investment manager and former Wall Street Journal All-Star Analyst. And I'm passionate about helping people think for themselves by teaching them about things like investing, which may not be their forte. My only goal is to help you figure out how to use your own discernment and instinct to make good investment decisions for yourself. I have no skin in the game. And to do what I'd like to help you do, we have to look at the world around us, since the stock market does not operate in the bubble. So let's dive in. How's everybody doing? So I'm going to do a little something different today because it's Friday and it's going to be a long weekend, Memorial Day weekend. And so I decided, A, I was going to stand up. Not that you can see me necessarily, but I just thought I'd stand up and I've got my back. My backdrop is actually a window and still you can see me. OK, if in fact you were not listening on a podcast. Anyway, I thought we'd try something different today, having to do with kind of like a little weekly wrap up, if you will. And we had some interesting things happen this week. Obviously, we had Donald Trump's case in New York, that ridiculous, let's call it pile of steaming poo. Hopefully coming to a close and they will leave this poor man alone. and stop trying to make up laws just to get him not to be able to run for president. So we had that go on. And then in the world of investing, interestingly, we had some some earnings this week, NVIDIA, which came out with great earnings, far, far better than well, I don't think far better, better than what was expected. The big news, I think, for them was the 10 the 10 to 1 stock split, which I think was a big driver of why right now this week the stock was strong. Not that it isn't a good company, but I think that was probably the big driver of that move higher. And of course, then we've got more layoffs coming. from tech companies, Pixar. We had Red Lobster formally declare bankruptcy. We've got Target came out with earnings and didn't do so great. There's a slowdown. In case you haven't heard, there really is a consumer pinch out there being driven by higher prices. And despite what we're being told by people on TV, there are higher prices. There are significantly higher prices in most of the consumer staples and everyday things that we all need, regardless of socioeconomic position. We all need things like toilet paper, gas for our cars, and some level of dairy, eggs, milk, bread, things like that. And so in the last couple of years, since 2021 really, we've seen a significant percentage increase. So just as an FYI, and I know you guys are all really smart, so you know this, when you hear them say, oh, inflation's down, no. The prices have not gone back to where they were in 2021, nor are they even close to heading back to that. All they're saying is that the rate of change from last year to this year, from last month to this month, the rate of change of the growth in inflation has slowed. In other words, instead of it growing 0.5% from January to February, and then another 0.5% from February to March, and then another 0.5% from March to April. That totals 1.5%. What they're saying is March to April went back down to inflation growth of only 0.2%. So 0.5, 0.5, 0.2. That doesn't mean inflation is down. It just means it's growing at a rate of 1.2% instead of 1.5%. So next time somebody tries to convince you that inflation is going down, please correct them. Please correct the record. Because I think people sound silly when they say that. The other thing I'll just mention real quick is that we've got a lot of folks talking about vacations this summer, which is a good thing. People need to take vacations. And they're talking about the price of oil supposedly is not going to go higher, despite the fact that we've been depleting our oil reserves to keep prices low and can't really do that anymore. And so that's going to affect people's travel plans for the summer. Regardless, again, because the rate of change in the price of gasoline may not be as high, but gasoline itself is still much higher than it was in 2021. So People are not traveling abroad quite as much. I'm hearing that there's going to be a big influx of US travel because that's a slightly cheaper. And I also think there's a lot of instability in the world, and people just don't want to travel so far from home. So let's not be silly and say that that doesn't have an effect. I just want to point out one thing, too, that I'm sure you guys have heard a lot about AI lately, particularly this week again, because of Nvidia earnings. And I had this deep thought. I'm going to leave you with it before I say goodbye to you for right now. And that is this. If. AI. Machine intelligence. is getting to the point where virtually all of the thoughts that we have, that we think as human beings are new and different, original, and we give them to the machines and they grasp those concepts, those thoughts, those ideas, those so-called original ideas. Eventually, Aren't we running out of original ideas? What will the purpose and what will the minds of human beings be doing if AI can do the thinking for us? Think about that. And if you think I'm wrong or you have something to say on the subject, I would love to hear it. Send me an email. send me an email. I would love to hear it. And I would love to know what your thoughts are on what AI is going to mean for our human brains and what we're supposed to do every day. I mean, I'm here talking, I guess eventually I'll have a digital double that I could type in a couple of things and say, hey, go talk to them about this. And it'll look just like this. I don't know. That's what they tell me is coming at some point. What does AI mean to you? I'd really like to know. Anyway, I hope everybody enjoys the long weekend. And I'm going to be talking to you again real soon. Sorry for the delay in recording something new for you. I've got a bunch of people that sort of had canceled and had to reschedule some podcasts with me. So I'm going to fly solo for a while and just talk to you on my own. I think I kind of like that better. And then I'll have to deal with other people's schedules. So don't buy the bull when you hear it this weekend, because somewhere in your travels this weekend, you're going to hear somebody say something silly and really a pile of BS, whether it's about the government, politics, you name it. Just look at them and smile and know that you know better than that. Have a great weekend. Ciao for now. Thanks so much for tuning into this episode. I really do appreciate it. Be sure to subscribe to the show, and that way you'll get updates about new episodes. Or if you really liked it, maybe you can share it to other folks you know. That I would really appreciate. So until next time, this is your reminder not to buy the bull. Ciao.