The only possible solution to massive fiscal budget deficits imo is hyperinflation. SA countries and others have been doing it for years. Coin debasement was its predecessor.
The issue is where to invest in that environment. As I figure the functioning parts of the economy will still need resources to function. They will have purchasing power as they are essential. So what products and materials do they need to purchase to function? IMO food and energy top the list. So it’s commodities. I prefer oil. It has a strong moat.
I think you have a very good point...
We have seen asset inflation because of the revaluing of the fiat currency.
And commodities sort of mess up their game.
I have come to believe we are seeing a world wide revaluing ..
What if all the fiat currency could tack a 0 on the end without hyper-inflation.
It would really knock a dent in the debts..
I don't know if they can keep a handle on it ... but I think that's what they would like.
I am moving into mines ... copper, silver, gold ...
even though they are rate sensitive they tend to inflate with other assets. And they have historically had that hedge feeling if things start running amuck.
Some pay pretty good dividends too.
With NVDA earnings coming .... hmmm ..some head scratching and deep breaths .. but I hold with my calls from the other threads.
As for oil ... I'm surprised they have held it down this long .. but ..supply is up, demand is down .. they want to try to hurt the Russians.. so... a lot of variables to ponder.
Food is an asset ...and it is inflating .. best play may be out in the back yard. I am planing on a big garden this year.
That may sound like an odd investment ... but I try to go where the clues lead me.
o ... and that whole “decouple “ from the $ thing ...
where is that going?
A really interesting divergence between the dax and the 10yr this am .... I saw it a bit yesterday also.
The elasticity between the two seems to have separated to the point of an inverse relationship.
$ buys are able buy cheaper dollars ... to buy better bonds ... then as the move reverses, they can sell better bonds for better dollars
it's anomaly I haven't seen ..
Thoughts?