Dealing with it
Do you see how after the big rise in gas prices in the early 80s, the nominal amount never went down, we just had massive inflation, so the relative cost just decrased. My assumption is that will occur again now, so how do I diversify my portfolio in order to protect it from inflation?
My other concern is that people will decide to move back to the urban core, where I live. Greater demand will result in increased housing prices, and my cost of living will go up.
I've essentially made life decisions the past few years that bucked the trend, and I've benefited economically from that. But what happens when what I'm doing becomes the norm rather than the exception?
For example, buying a fuel efficient car: now is the worst time to do so as demand is so high. But just like in the early eighties, I predict that in the next four years, automakers will dramatically increase the fuel efficiency of their vehicles, gas prices will drop and there will be a surplus of miser-mobiles on the market. So it's just a matter of patience.



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