People exit passive investments, i.e. investments that don’t actually earn money, in times of rising inflation/interest rates. If the asset is not actively earning money then it is not a good hedge against inflation, also most passive investments are dependent on low interest rates or easy money to fuel their growth and are thus frequently ‘speculative’.
6 posted on
05/08/2022 9:08:30 PM PDT by
Brellium
(This post brought to you by St. Javelin, the worlds leading distributer of T72 parts)
To: Brellium
Nailed it!
Passive income is another word for PONZI scheme.
7 posted on
05/08/2022 9:41:10 PM PDT by
entropy12
(The best MAGA president in my 62 years in USA as adult, Donald J Trump!)
To: Brellium
I never quite understood Bitcoin. But Bitcoin seemed highly speculative in addition to being complicated and that kept me away from it.
9 posted on
05/08/2022 9:47:18 PM PDT by
Wilhelm Tell
(True or False? This is not a tag line.)
To: Brellium
People exit passive investments, i.e. investments that don’t actually earn money, in times of rising inflation/interest rates.
Historically, the opposite is true. Gold has always performed well in inflationary environments.
And Bitcoin was at $5500 in March 2020, right before the Federal Reserve put the money printer in overdrive.
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