Artis Real Estate Investment Pref Shs Series E T.AX.PR.E

Inflation, is it .................everywhere?

[DZtrader]

Ok, subject line is a bit misleading, but I'll get to it. So I'm back in Bangkok, yes again, so first thing I do is seek out my favorite little eatery in Sukhumvit for a tasty dish of Thai panang curry chicken. Now comes the inflation part. I've been frequenting this little place for years and for as long as I have, it's been 60 Baht for this dish, an absolute steal at approximately $2.50 CAD. So I roll in and quickly peruse the menu, already knowing what I'm getting and low and behold to my surprise my beloved panang had sky rocketed to $100 Baht...................a whopping $4.20 CAD. Now it's not the 4.20 in itself that necessarily caught my attention, because, hey, it's 4 dollars 20 cents, it was the size (percentage) of increase that stood out, in particular in a country where they seemingly keep a pretty good lid on price inflation. Ahhh what's a guy to do. Case in point, if in a country like this I see recent price pressure where it is not as easily passed on as back in North America, then yes, inflation still has some relevance, even if for the most part it is a bit subdued.

Last data set (for those looking) on ISM manufacturing (U.S.) and non manufacturing Services both flashed a little reminder that inflation there is not yet dead, although Canada hmmmm not so much.

All this talk of inflation and price increases and 100 Baht panang in this bastion of madness they call Bangkok has me slinking off to another one of my favorite little haunts, that one place, that little island of safety, where they are as price steady as Cosco (U.S) hot dogs (bleh) and get me that creamy little delicacy in the Ikea in Emsphere............a perfect little ice cream dispensed out of a machine...........and still holding steady at only 8 Baht................you do the math (.33 cents)............alas, the days not a total bust.

Stay good,

DZ

[DZtrader]

............forgot, worth mentioning, as noted a few posts back, next CPI, while I don't expect it to be totally hot, I do believe there is a reasonably good chance she will be warm. That being the case, on top of the last bit of data, the worry of inflation, the seemingly strengthening U.S. economy and thus upward pressure in yields, this has the potential to propel us to that 5 handle on the

[EstevanOutsider]

Good to hear, DZ. What ever happened to the concept of real estate being a hedge against inflation as well. Aside from offices, i would argue it has been. Buildings costs have gone up a lot and land value continues to increase. This will be a good trade again at some point, I don't know when. Manji doing it right unlike others by aggressively buying back heavily discounted units

[jmkOttawa]

100 percent. At some point. And office vacancy will nomalize at some point as well. 

[DZtrader]

Hey Este, even better to hear from you, thanks for the always valuable insights and information. I guess yes, one could argue its a hedge against inflation, albeit one that perhaps not many of us appear to have implemented! I will probably sound like a broken record when I suggest or reiterate that it just seems like no brainer accumulating down here (even if it is again). Everyone saw the rip we

[jmkOttawa]

Not a broken record at all DZ. Love this post. Patience will reap dividends..!!

[EstevanOutsider]

Great thoughts as always, DZ. Generational wealth, I like the sound of it! When I like at how cheap these REITs are and where the private market is buying a lot of assets at in the past year it really does excite me. Don't think ~50% gains are far fetched in the next couple years on a lot of names, Artis included. Artis one of the ones buying back the most units to capture the