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Inflation and What To Do


The_Dude
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Saw that the markets tumbled after the Fed stated the obvious -- inflation is coming this way.

 

I am only intimately familiar with a historical analysis of inflation through the eyes of the Romans. That knowledge does me no good.....their issue was debasing the coins of silver and using less precious metals. We're not on the gold standard and we're not trading with metals.

 

So, smart money people, how do we handle inflation in today's economy? I'd offer suggestions, but I've no idea what to suggest. 

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Invest in a managed pool of diversified equities.  That is all.  

 

*** this post of for entertainment purposes only and doe not constitute actual advice**  

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14 minutes ago, The_Dude said:

Saw that the markets tumbled after the Fed stated the obvious -- inflation is coming this way.

 

I am only intimately familiar with a historical analysis of inflation through the eyes of the Romans. That knowledge does me no good.....their issue was debasing the coins of silver and using less precious metals. We're not on the gold standard and we're not trading with metals.

 

So, smart money people, how do we handle inflation in today's economy? I'd offer suggestions, but I've no idea what to suggest. 

@The_Dude

 

I missed that, would you have a link or some such to their announcement that you speak of?

 

TYIA

 

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8 minutes ago, Foxx said:

@The_Dude

 

I missed that, would you have a link or some such to their announcement that you speak of?

 

TYIA

 


They wanted the Feds to institute yield curve control, and they didn't.  The market ain't happy.
 

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7 minutes ago, Ann said:


They wanted the Feds to institute yield curve control, and they didn't.  The market ain't happy.
 

Yep, I went looking after posting that. I see the TSY yields are blowing up again.

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24 minutes ago, Ann said:


They wanted the Feds to institute yield curve control, and they didn't.  The market ain't happy.
 

Goddamnit. I’ll be googling “yield curve” now. 

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7 hours ago, The_Dude said:

So, smart money people, how do we handle inflation in today's economy?

 

I suggest panicking.

 

6 hours ago, Chef Jim said:

Invest in a managed pool of diversified equities.  That is all.  

 

*** this post of for entertainment purposes only and doe not constitute actual advice**  

 

Or some sage nonsense like this, I guess.

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It was bound to happen with the fed quantitative easing. Add in the ridiculous stimulus checks and we have hit not only a high point in savings which can be a good thing sometimes, the problem comes when people decide to spend it. So now add in the lack of production due to the pandemic and we now have to many dollars chasing too few goods. 

 

Usually the fed plays it out by contracting the money supply and raising interest rates to discourage buying. But while that works for business investment, it ain't gonna work with a bunch of people saving up all through the Rona, and eager to spend whether on vacations or items once the restrictions are lifted. Come to think of it, maybe that's one of the reasons they want to extend the lockdowns longer?

 

To prepare? Best advice is to make sure any loans you have are locked in interest rates because when inflation goes up, those adjustables (like our national debt) will go up as well. Most investors will start switching to commodities and you'll know when because they will drive those prices up. 

 

If your in the market, DON'T PANIC! There's going to be plenty of that to go around from short term investors. Hopefully your in it for the long haul. That said, there could be opportunities because it is going to cause some companies to be undervalued as well as the ones overvalued. Play it smart and long term and you'll be fine... 

 

And always keep in mind, the only ones that truly make out during high inflation is the government because as inflation causes higher wages people move into higher tax brackets giving their greedy mitts more money. So honestly, once they realize this, they may have little motivation to try to curb it. 

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  • 3 weeks later...
On 3/8/2021 at 8:08 PM, Cinga said:

It was bound to happen with the fed quantitative easing. Add in the ridiculous stimulus checks and we have hit not only a high point in savings which can be a good thing sometimes, the problem comes when people decide to spend it. So now add in the lack of production due to the pandemic and we now have to many dollars chasing too few goods. 

 

Usually the fed plays it out by contracting the money supply and raising interest rates to discourage buying. But while that works for business investment, it ain't gonna work with a bunch of people saving up all through the Rona, and eager to spend whether on vacations or items once the restrictions are lifted. Come to think of it, maybe that's one of the reasons they want to extend the lockdowns longer?

 

To prepare? Best advice is to make sure any loans you have are locked in interest rates because when inflation goes up, those adjustables (like our national debt) will go up as well. Most investors will start switching to commodities and you'll know when because they will drive those prices up. 

 

If your in the market, DON'T PANIC! There's going to be plenty of that to go around from short term investors. Hopefully your in it for the long haul. That said, there could be opportunities because it is going to cause some companies to be undervalued as well as the ones overvalued. Play it smart and long term and you'll be fine... 

 

And always keep in mind, the only ones that truly make out during high inflation is the government because as inflation causes higher wages people move into higher tax brackets giving their greedy mitts more money. So honestly, once they realize this, they may have little motivation to try to curb it. 

Watching Squawk this morning, and Toomey is on(btw, I really like that dude)  and he gunna grill Powell this morning on the Fed saying

 

Real GDP revised up to 6.5% growth

Do not expect inflation, actually expect it to decline from current levels

 

BUTTTTTT

 

they don't expect unemployment to be significantly impacted...

 

as he said "convenient configuration for the extraordinary monetary policy that we have"

 

Gunna have some fireworks today on the Hill

 

 

Edited by plenzmd1
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3 hours ago, plenzmd1 said:

Watching Squawk this morning, and Toomey is on(btw, I really like that dude)  and he gunna grill Powell this morning on the Fed saying

 

Real GDP revised up to 6.5% growth

Do not expect inflation, actually expect it to decline from current levels

 

BUTTTTTT

 

they don't expect unemployment to be significantly impacted...

 

as he said "convenient configuration for the extraordinary monetary policy that we have"

 

Gunna have some fireworks today on the Hill

 

 

 

Revised GDP up 6.5%? Whose ass did they pull those numbers out of?

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Alaska Darin
On 3/24/2021 at 11:07 AM, Cinga said:

 

Revised GDP up 6.5%? Whose ass did they pull those numbers out of?

K. Kneepads.  She's got/had all kindsa stuff up there.

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