“Deflation Next? Will The Bullwhip Do The Fed’s Job On Inflation”
I was wondering if we see this on Trucks. There are still tons of trucks waiting for chips not delivered to the dealers. If the trucks are shipped out at the same time, I think there will be some discounting.
I have a simpler explanation. If you sell your stocks, where do you put your money? Keep it liquid or in cash? Whether you put it in a money market, a savings account, or bury it in your yard you are guaranteed to lose at least 8% per year from inflation (probably a lot more as Bidenomic inflation continues to skyrocket). Buy gold? The two largest gold producing countries in the world are China and Russia. Either country can decrease or increase the price of gold anytime they want simply by increasing or decreasing their production. At least in the stock market you have a possibility of breaking even or coming out ahead.
Yeah, well they are wrong. After a severe crash - not a recession - we will get deflation....maybe. A recession won't do it. Not with money printing at a breakneck pace.
I believe that what is clouding many people's judgement is that we are entering truly uncharted territory. Too many variables coming together that could cause a perfect storm.
Why Is Deflation Worse Than Inflation?
https://www.thefreemanonline.org/why-is-deflation-worse-than-inflation/
That thar is one heck of a sentence!