If you believe there will be much US dollar inflation along with a fundamentally healthy economy then a rational approach would be to borrow as much as you can and buy market ETFs.
Not going to say anything bad about crypto ever, as I have made in the 6 figures off of it.
My dudes... if you have debt, INFLATION is what you want for yourself. The more inflation, the easier to pay off your debt.
Massive inflation is what SHOULD have happened with the trade wars, the low unemployment rate, and the massive infusions of free money and other Fed interventions.
This is why the Fed kept wanting to raise rates and Trump kept saying No Way, give me LOWER rates.
Everyone expected huge inflation because Fed listened to Trump and didnt raise rates.
BUT the expected inflation didn't materialize and nobody knows why!
Trump wants 2% average inflation per year. That rate makes debt easier to pay, forces the FED to eat the majority of inflation costs (treasury bonds pay less interest than inflation), gives a low threshold for banks to profit off of commercial loans, and pushes timid cash holders to invest their money in the economy.
If you're sitting on cash, invest in growing American companies that haven't gone woke. If you don't know how to judge individual companies, buy index funds. Cash is a losing investment, and crypto never generates profit and therefore its price is pure speculation.
If Biden wins, growth companies lose, monopolies win. Decrease in competition for employees and customers, costs go up, wages go down. Stocks will go up in the Retail/Consumer goods sectors, emerging markets tank. Interest rates will likely have to be RAISED to battle inflation, which will then drop the markets back down.
If Trump wins, growth companies win, emerging markets win, monopolies lose. Increase in competition for employees and customers, costs go down, wages go up. Stocks will go up in emerging markets sectors, growth sectors, but will stagnate in dividend companies and monopolies.
If Biden wins, we will likely see an uptick in inflation, which will be corrected by raising interest rates.
If Trump wins, we will likely see a downtick in inflation, which, if Powell is still in office, will result in Powell taking longer to adjust interest rates, since he opposes Negative Interest rates.
Sucks to not know which is happening for sure. I think the best bet is to buy strangles in Emerging Markets ($EEM). Long-term, maybe march or april.
Well actually we could see stagflation. Rising prices on things we need and lowering of prices on shit we don't. This is actually kind of normal in the digital age. Food costs go up for instance but electronics go down so it seems as if there is little to no inflation even though it costs you more at the grocery store. The only time it really is a problem is if you add high unemployment.
Are you saying this is your portfolio spread into crypto or that you believe crypto will reach these numbers?
If you believe there will be much US dollar inflation along with a fundamentally healthy economy then a rational approach would be to borrow as much as you can and buy market ETFs.
Not going to say anything bad about crypto ever, as I have made in the 6 figures off of it.
Inflation. With these low interest rates well below the rate of inflation your savings are just sitting becoming more and more worthless.
Inflation... the printing presses have been going non stop...
My dudes... if you have debt, INFLATION is what you want for yourself. The more inflation, the easier to pay off your debt.
Massive inflation is what SHOULD have happened with the trade wars, the low unemployment rate, and the massive infusions of free money and other Fed interventions.
This is why the Fed kept wanting to raise rates and Trump kept saying No Way, give me LOWER rates.
Everyone expected huge inflation because Fed listened to Trump and didnt raise rates.
BUT the expected inflation didn't materialize and nobody knows why!
I’m no expert but just look at the last few decades. Inflation.
Trump wants 2% average inflation per year. That rate makes debt easier to pay, forces the FED to eat the majority of inflation costs (treasury bonds pay less interest than inflation), gives a low threshold for banks to profit off of commercial loans, and pushes timid cash holders to invest their money in the economy.
If you're sitting on cash, invest in growing American companies that haven't gone woke. If you don't know how to judge individual companies, buy index funds. Cash is a losing investment, and crypto never generates profit and therefore its price is pure speculation.
If Biden wins, growth companies lose, monopolies win. Decrease in competition for employees and customers, costs go up, wages go down. Stocks will go up in the Retail/Consumer goods sectors, emerging markets tank. Interest rates will likely have to be RAISED to battle inflation, which will then drop the markets back down.
If Trump wins, growth companies win, emerging markets win, monopolies lose. Increase in competition for employees and customers, costs go down, wages go up. Stocks will go up in emerging markets sectors, growth sectors, but will stagnate in dividend companies and monopolies.
If Biden wins, we will likely see an uptick in inflation, which will be corrected by raising interest rates.
If Trump wins, we will likely see a downtick in inflation, which, if Powell is still in office, will result in Powell taking longer to adjust interest rates, since he opposes Negative Interest rates.
Sucks to not know which is happening for sure. I think the best bet is to buy strangles in Emerging Markets ($EEM). Long-term, maybe march or april.
Well actually we could see stagflation. Rising prices on things we need and lowering of prices on shit we don't. This is actually kind of normal in the digital age. Food costs go up for instance but electronics go down so it seems as if there is little to no inflation even though it costs you more at the grocery store. The only time it really is a problem is if you add high unemployment.
Inflation
0 interest rates and massive default of business coming
possible even pseudo currency reform with the great rest