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What are your thoughts on the chances of rising inflation?

Posted on 8/29/20 at 12:29 pm
Posted by Dandaman
Louisiana
Member since May 2017
704 posts
Posted on 8/29/20 at 12:29 pm
This article is the second I’ve read lately about the market showing signs of investors anticipating higher inflation. Wondering if the folks here are thinking similarly. The fed’s recent statement is also interesting relative to this topic as they seem to be anticipating inflation above target as well.
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80772 posts
Posted on 8/29/20 at 1:54 pm to
I don't think its possible to do $7 trillion in stimulus and not get ridiculous inflation
Posted by BestBanker
Member since Nov 2011
17474 posts
Posted on 8/29/20 at 2:13 pm to
Inflation?!

I MARRIED her!
Posted by Dandaman
Louisiana
Member since May 2017
704 posts
Posted on 8/29/20 at 2:28 pm to
Indeed, the money supply has increased faster than ever.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 8/29/20 at 2:38 pm to
I still think deflation poses is far more likely for the time being, and its obviously poses a greater risk than inflation anyways. So for now, I don’t think inflation is a concern.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 8/29/20 at 2:42 pm to
quote:

What are your thoughts on the chances of rising inflation?
I'm in favor of it...
Posted by Dandaman
Louisiana
Member since May 2017
704 posts
Posted on 8/29/20 at 5:14 pm to
If interests rates don’t rise with inflation (as seems to be the fed’s intent) an asset bubble seems to be a certainty. A very large bubble.
Posted by Decisions
Member since Mar 2015
1474 posts
Posted on 8/29/20 at 5:16 pm to
As long as your money is in assets that will inflate in value/dividends with the market (especially if you borrowed them on a fixed rate) I have no problems with inflation.

Strictly speaking if you KNEW inflation was coming the smartest thing to do would be to get leveraged to the hilt on a fixed rate and rake as the debt devalues.

I do not recommend that, though, because generally things aren’t that simple.
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 8/29/20 at 7:44 pm to
Leverage and investments
Posted by CaptainBrannigan
Good Ole Rocky Top Tennessee
Member since Jan 2010
21644 posts
Posted on 8/30/20 at 8:46 am to
It's already happening if you live in the real world.
Posted by tigernnola
NOLA
Member since Sep 2016
3589 posts
Posted on 8/30/20 at 10:56 am to
Looking for a big problem in 2022.
Posted by Rust Cohle
Baton rouge
Member since Mar 2014
1944 posts
Posted on 8/30/20 at 9:32 pm to
Good thing about inflation is that it pays down your debts.

I’m brainstorming about going from 15 years left in loan to a 30, I’ll cut my payment in half, and be able to use the money for investments. In 30 years could it be possible that the value of my home be the sum of the principal and interest paid on my home? A net 0 interest rate? Is this crazy talk?
Posted by Skeezer
Member since Apr 2017
2296 posts
Posted on 8/31/20 at 7:02 am to
There will absolutely be inflation. Especially since the fed just admitted this much.
Changing their policy to target an “average” rate of 2% means that we can seen 3-5% inflation over the next few years and it will still meet their 2% average target.

I am not optimistic at all. And I think gold and silver are still really cheap when to compared to what they will be cost in five years.
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