Global inflation rates are going up more rapidly than economists predicted. This is concerning because runaway inflation could be catastrophic for global markets. The knock-on effect on the Rand and global bond yields will be significant. How the Fed and other policy makers deal with this issue will therefore be key. For now, most policy makers believe that prices will settle down once supply is able to catch up with post lockdown demand.
What is less clear is by how much inflation will fade. For example, US unemployment rates remain worrisome as many potential workers remain on the side-line. This could keep inflation higher for longer.
Source: PortfolioMetrix and Bloomberg
This podcast about the world’s loneliness crises really touched me. I have seen how loneliness affected friends and family around me over this past year. In this podcast, acclaimed economist Noreena Hertz speaks about how loneliness not only affects your well-being but also your physical body, longevity, the economy and even the way you vote. It’s a sad reality but thankfully, Noreena shares great ideas on how to address the crisis, speak to our kids about loneliness and much more. I’m sure some of you will also relate, or at the least, know someone in this position. I think we all have a responsibility to recognise this problem and do what we can to alleviate it.
Foundation turns 10 next year, and recently our team spent a morning with renowned futurist and strategist, Graeme Codrington, thinking about how we can prepare ourselves for the next 10 years. We quickly realised that drawing up a 10-year plan is pointless. Technology is changing our world at lightning speed, and a 10-year plan cannot hold up in an environment like this. Graeme showed us how small experiments and constant re-evaluation can guide the business through any unknown. This mindset could be difficult for some as it requires being open and flexible. So how do you build this capacity?
One of the books Graeme suggested we read is Think Again by Adam Grant. This book is about unlearning and relearning. Its shows that there is joy in being wrong and knowing what we don’t know is in fact, the beginning of wisdom.
Our team is working through this book, chapter by chapter. We have never done this with a book before, but this one deserves the time. Sometimes thinking about the future and the unknown scares me, but this book has filled me with hope and curiosity. I hope you will enjoy it as much as I did.
Our Foundation community has a wealth of insight and knowledge. With this monthly letter, we would like to launch a poll asking you for your vote. We are looking for hidden gems that we can share amongst ourselves. The idea is to keep it light and fun.
Results from last month’s edition:
What is your favourite wine (if price and availability was irrelevant)?
What is your favourite budget friendly wine?
I love the wines you have shared, thank you. So many to choose from. I have decided to put together a Christmas wine wish list. This will be shared in the December newsletter.
I hope you enjoyed this month’s edition. Let me know if you have anything interesting to share.
Let’s stay curious together!
Elke Zeki, CFP®
Head of financial planning & strategic partner