That is particularly bad considering the hyperinflation we will likely start to see in the not-too-distant future due to the inevitable increase in the money supply that will be needed to finance our debt. (In other words, if he’s right, we’re looking at penny stocks)
My view is that while gold is good, other assets are also good. Real estate is one, stocks are another. A good Gold stock mutual fund is in my view best.
Financial assets tied to the currency will suffer.
When in school I was taught that stocks are a hedge against inflation. That has not bee true in the recent past where we had stag flation. When the economy moved the lagging stocks boomed.
The rise of worry seems to me to be about earnings with an inflation fear component.
That is Y = e/p(I) + (G*I) + (in*I)
Where:
Y = yield
e = earnings
p = per share price
I = investment
G = growth
In = inflation