This is a very difficult discussion for me. I am working toward a
master's degree in forensic accounting. Corporate financial
management is not something that interests me at all. While I can see
myself potentially working for a large corporate company, it would
be in the capacity of forensic accounting, not investment or
corporate management.
The macroeconomic variable that I expect to be the most impactful in
the future is inflation. There are three indicators that investors can
watch for to try and predict and incoming inflation: federal interest
rates, oil (and other energy) prices, regionalization (lowest cost
producer). Fixed income investments like CDs or bonds present and
future values are impacted by raising inflation. Stocks have
responded well to inflation in the past, but the larger the company
the lower the impact on the stock value. Real assets, like real estate,
do well with inflation. Looking at recent years, we can see how high
house prices got resulting in huge gains for sellers during that time
(
Effects of inflation on investments,
2022).
Overall, inflation will have a huge impact on my personal life.
Currently, my family rents our home. Inflation in the real estate
market makes it even more enticing for our landlord to sell the home
or even simply raise our rent.
Reference
Effects of inflation on investments
. Effects of Inflation on
Investments | U.S. Bank. (2022, September 16). Retrieved January 15,
2023, from https://www.usbank.com/financialiq/invest-your-
money/investment-strategies/effects-of-inflation-on-
investments.html
