Beware of Inflation: The Bullwhip Effect

Money Tree Investing

Money Tree Investing Podcast

Stockmarket, Valuestocks, Investing, Finance, Passiveincome, Wealth, Business, Personalfinance

4.6 • 658 Ratings

🗓️ 4 August 2022

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

High Inflation Explained...

This week we dive into one of the major causes for high inflation... Hint, its not excessive money printing.

We discuss the bullwhip effect, how it effects commodities and goods like avocados, lobsters, ammunition, lumber and more. We make this advanced economic topic simple and easy to understand. You can amaze your friends and family with your extensive knowledge about how the economic system works and it might even help you understand how this inflation cycle will play out...

Yes this topic is that important.

Oh did I mention that The Beer Game is a simple way to understand the bullwhip effect as well...

Sorry The Beer Game does not involve drinking beer. Although I won't tell you not to. 🙂

Don't forget to check out our new Bear Market Survival Guide - The Top 12 Bear Market Rules to Help You Survive and Thrive in The Next Bear Market. It will give you simple and easy, actionable advice to set yourself up for success with your investments.

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Douglas Heagren | ProCollege Planners

Follow on Facebook: https://www.facebook.com/moneytreepodcast

Follow LinkedIn: https://www.linkedin.com/showcase/money-tree-investing-podcast

Follow on Twitter: https://twitter.com/MTIPodcast

For more information, visit the show notes at https://moneytreepodcast.com/bullwhip-effect-beware-of-inflation

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the Money Tree Investing Podcast. Stock market, wealth, personal finance, value stocks,
0:08.2	invest in your life. Hello, the Smart Money Tree podcast listeners. This episode, we're going to
0:13.1	talk about an interesting concept, which I've been seeing for a while and wanted to talk about
0:18.0	it because no one really talks about this, but it'll help you understand
0:22.8	what's going on a lot better. And it's called the Bullwhip effect. Today, I'll be joined with Doug
0:27.8	Hagrin. Hey, Doug. Hey, Kirk. How are you doing today? Good. Good. Doing well. Can you tell us
0:32.5	a little about this concept? Yeah. So, Kirk, the Bullwhip effect is really interesting because it is a constant struggle for
0:40.9	producers, suppliers to figure out and predict what the demand is going to be for their product
0:48.0	over the upcoming quarter, you know, short term, intermediate term, and long term. And what that
0:53.6	tends to result in
0:55.2	is trying to figure out and have control over inventory because inventory is very expensive for
1:00.1	companies. And also, if you have too much of it, prices can drop because you need to get rid of that
1:05.6	inventory. And of course, if you don't have enough of it, then prices go up. People get unhappy
1:10.3	because they can't get what they want.
1:11.4	It actually started in 1990. It was coined when Procter & Gamble was finding erratic and amplified order patterns for the supply chain for their baby diapers.
1:22.0	There's some other names for it, such as whiplash and whipsaw effect that some people may be familiar with.
1:27.5	Yeah, so just to kind of bring it back to a kind of conceptual level for our listeners here,
1:33.0	think of it this way.
1:34.2	Think of a pond, right?
1:35.2	The pond is there's no wind, there's no waves, it looks like glass, right?
1:39.8	Then you take a stone, you throw it into the pond.
1:42.5	All of a sudden it starts causing waves right from
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Money Tree Investing Podcast, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Money Tree Investing Podcast and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.