Savvy Trades and Investments

[maxluke1]

Wage inflation - this is the key question right?

I think we are underestimating how much leverage employees are going to have over the next 3 to 5 years, especially in developed countries where manufacturing is coming back.

In Canada where I work, my line of work is tied to O&G and while the market is improving, it isn't gangbusters. Even so, myself and others that I work with are asking for and getting 10% raises because there is nobody to hire (I'm a mid-level scientist who works alongside engineers). If you jump ship, you get 20% raises. The craziest part is that the guys in the plants, the operators, the field guys, shop level, etc. can command even larger raises/pay. I think it's even more pronounced in hotter parts of the economy.

My view is that there simply aren't enough workers that are trained properly. For many years now, companies have been spoiled and could demand a lot when hiring. They got used to it, and are ill-equipped.

With this said, stocks are the place to be. The rotation to different sectors in a rising rate environment (even if a modest rise) is going to be interesting, especially with tech, FANG, pandemic plays, etc. having increased their share of the market indices over time.

All my opinion.