191–192 of 192 posts
Earlier quoted context omitted.
Well that begs the question, how are you going to double income beyond the rate of inflation?
If it happens, it will be the same way it has been done for hundreds of years. Increase in productivity. More widgets and stuff produced per worker is the only way to beat inflation. This is the fundamental economic goal of nations which seek prosperity.
Earlier quoted context omitted.
Let's say you are an airline. You are selling tickets for the next year. Jet fuel is a major input cost, largely driven by the price of crude oil. If you sell a ticket today for 6 months from now, you are implicitly short the oil market. You haven't actually shorted the market, but if prices increase over the next 6 months, you may end up losing money on the tickets you sold. This is why you see airlines hedging, bec…
Thanks for explaining. your are talking about exposure to cost increases relative to your intended purpose. I hold that still depends on what your alternative investment opportunities are. If you buy the $1M house when you actually want the $2M house, you are still locking in 50% of the cost. Thats a good thing if the alternative investments perform poorly, and a bad thing if the alternatives are better.