Small Businesses in Crisis! Are My Investments Safe?!

¡Ay Dios Mío! Trouble in Paradise?

Hola everyone! Leo here. Usually I'm talking about scoring goals not reading boring economic reports. But my advisors they tell me I need to 'diversify my portfolio'. So I've been looking at what's happening with small businesses in the US. And let me tell you it’s not looking as beautiful as a perfect curler into the top corner. Apparently small business confidence is at its lowest since 2012! That's even before I started dominating the world of football. What's going on? Seems like inflation is the main culprit. 'La Inflación' is giving these businesses a headache bigger than trying to defend against me in the box. These businesses are not doing well and need a little magia pronto! Maybe I should try dribbling through the stock market! What do you think?

Inflation: The Opponent No One Wants

According to this report from the National Federation of Independent Business (NFIB) a quarter of small businesses say rising costs are their biggest problem. A quarter! That's like having a whole defensive line dedicated to stopping *only* me. As Bill Dunkelberg from NFIB says 'Inflation has once again been reported as the top business problem on Main Street.' They are struggling with input costs labor costs... you name it! It's like trying to buy yerba mate in Miami – everything is more expensive!

Price Hikes: The 'Hand of God' for Small Businesses?

To deal with these costs many businesses are raising their prices. A net 28% reported raising prices and 33% plan to do so. Ouch! It's like when Inter Miami suddenly charges a fortune for tickets when I'm playing. But hey they gotta survive right? And speaking of surviving they're also increasing compensation for workers. Good for them! But it all adds up doesn't it? It's a domino effect of rising costs just like a perfectly timed through ball leading to a goal.

The Fed: Our Star Defender... Maybe?

The good news (sort of) is that other data suggests inflation might be receding. The Commerce Department says inflation is around 2.5%. The Fed they're targeting 2%. So we're getting there. Slowly. It's like trying to get Tata Martino to explain his tactics... a slow process with a lot of head scratching! The Fed's survey respondents are still expecting prices to rise substantially though especially for rent gas and food. That does not sound very good... I might need to lower my expectations for what Antonela can buy for me at the grocery store!

Rent Hikes! Even *I* Wouldn't Dribble Through Those!

This New York Fed survey it's showing everyone expects rent to go up...a lot! 8.7% over the next year. What! Even I might need a roommate if that happens. Luckily my Miami mansion is paid off. But it's a serious issue especially for young people starting out. Imagine trying to afford a place to live AND a Messi jersey! Talk about tough choices!

Will My Investments be Safe?

So what does it all mean? Well I'm not an economist I'm just a guy who kicks a ball really well. But it seems like things are a bit uncertain. Will inflation keep going down? Will the Fed cut interest rates? Will Inter Miami ever win another trophy? Only time will tell. But one thing is for sure: I'll keep doing my best on the field and hopefully the small businesses can find their own way to score some goals too! Now if you'll excuse me I have a training session. Gotta keep that left foot working its magic!