You are a hedge fund trader and the Federal Reserve just gave you acces to a heap of money at really cheap prices in what appears to be a highly inflationary envorinment. Your choice is:
a. Safe bet. Buy treasury notes at a .0015%/year discount to return (including your borrowing costs).
b. Buy a broad basket of commodities leveraged at current margin rates on futures with a 95% guaranteed portfolio correlation on a broad basket to expected inflation rates based upon quantitative easing projections.
I.e. are you going to gamble for no significant gain or an almost certain payoff of a large gain, with no moral hazard since if you lose, the Fed will have to bail you and all of wall street out yet again again again to avoid "system risk."
I take it as rhetorical, because I know little about hedge funds or trading. Though I have 2 degrees, I know little about the technicalities of the market. Growing up in Vegas, when my parent’s would talk about the market being up or down, I’d ask “Isn’t it just gambling? Some people win and some lose?” My dad said “Kinda” and that’s the last I thought about investing in anything but self reliance as long as the Fed/Bankster/Lawyers in Government are running things.
But there will come a time, and probably soon, sadly probably not without all out war, that the people will quit being pillaged to bail out anyone, and probably sooner than anyone in general expects. And then, as all fiat currencies do, our money will be worth nothing and we’ll either pick up the pieces as a sovereign nation, or be warred with by a Globalist order for decades.