U.S. Inflation Accelerates to 40-Year High
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Re: U.S. Inflation Accelerates to 40-Year High
#2And probably soon to 90y high. Most workers getting a significant bump to keep them at work, worldwide logistical mess, one must be naive to think these and everything else won't have further repercutions.
Re: U.S. Inflation Accelerates to 40-Year High
#3This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?
Re: U.S. Inflation Accelerates to 40-Year High
#4No post body was provided.
Re: U.S. Inflation Accelerates to 40-Year High
#5Cant imagine real estate not taking a hit when yields go up...
Re: U.S. Inflation Accelerates to 40-Year High
#6Cant imagine real estate not taking a hit when yields go up...
All that free money drying up
Re: U.S. Inflation Accelerates to 40-Year High
#7We are in a tough spot. The Fed has held interest rates at 0 (negative, real terms) which makes all cash flows effectively infinite net present value. When rates are this low, small perturbations can be catastrophic for the NPV of, well, pretty much everything.
I expect a lot of chaos with the economy whipping between inflation and deflation over the next few years as the Fed tries to ride the tiger.
It's a good reason to never let rates get this low in the first place. From zero, any increase is an infinite increase in interest rates, and a corresponding crater of NPVs.
Welcome to the long run, folks. At least Keynes is dead, so, good for him, I guess.
Re: U.S. Inflation Accelerates to 40-Year High
#8This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?
>This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?
Hyperinflation is defined as 50% inflation per month.
https://tradingeconomics.com/united-states/money-supply-m2
Inflation has roughly 40% locked in; which will push out over a few years. Hyperinflation isn't in the cards.
https://tradingeconomics.com/united-states/money-supply-m1
Then you look at M1 and it's like... well could happen but it's not locked in yet.
Re: U.S. Inflation Accelerates to 40-Year High
#9This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?
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