#90 Facing Deflation

10 Year Anniversary

Today we are celebrating our 10th anniversary as Fi Plan Partners. It has been an honor to serve our clients over these past years and bring you our Investors’ Insights videos. Here’s to another 10 years.


If you look back over our video blogs, you will see that we have been talking about deflation for a long time and that the world is going to face it sooner or later. Any time you have a financial crisis like we had in 2008, and people accumulate sizable debt, it will take about 10 years to get that back under control again. This adds to deflation along with technological advances, low interest rates, and the Baby Boom generation not spending as much as they use to.

The Fed and Deflation

The Fed is perplexed because they don’t understand why consumers are not spending when interest rates are so low. We believe that the consumer is taking the extra money they are saving from the gas pump and using it to pay down debt.

While the low interest rates have been good for the stock market and corporate America, it has hurt the wage earner as jobs and pay have been cut.

Oil prices are rising but…

Last week we started to see oil prices go back up. Some people rejoiced because this meant that the oil companies could start being more profitable. Historically, we now have the largest reserve of oil in the world. There is still speculation that oil prices can still go down as we dip into these reserves and that the price of oil could drop down to $20 per barrel. This will be a big topic as we continue on in 2015.

Please let us know if you have any questions or topics you would like us to discuss in these videos. You can call me at (205) 989-3498 or email me below.
Greg Powell, CIMA
Wealth Consultant
Email Greg Powell here

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Greg Powell is President and CEO of Fi Plan Partners, an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Stock investing involves risk including potential loss of principal. 

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