Inflation today is measured in a different way than it used to be. The reasoning behind this is that many consumer goods that are used to measure inflation did not exist at the time of the last great inflation. When it comes to financial assets and real estate, there has been a high level of inflation that is simply not captured in inflation index. For retail investors, these times can be a bit unsettling. You should get rid of the assets that make you feel this way and perhaps move into investments that will be somewhat inflation protected.
- COVID has caused a lot more new money to flow into the market but we are seeing a disruption in manufacturer.
- It’s a good idea not to have investments that make you feel uncomfortable in any way.
- Warren Buffet’s predictions seem to be more realistic while the Nasdaq’s projections look like the economy will bust.
“The bad news is the QE scheme has likely reached its limits of sustainability and more new money poured into these assets might burst the bubble and trigger another meltdown.”