have you ever lived in hyperinflation times? that will not work this way as you say 1. consumers will not be able to buy the same amount of bread they will buy less every days, income in real term drop dramatically during hyperinflation times 2. margins must be huge to have time to buy commodities before money lose their value or after selling company will stay with worthless money hyperinflation virtually guarantees 50% drop in the economy so in real term you will lose huge if hyperinflation hits
The numbers do not support this, there were net outflows from individual investors for most of 2010. The demographics are very top heavy, so for every 1 employee in an economy with double digit unemployment, you are going to have planned withdrawals from those of retirement age and "hardship" withdrawals for those trying to survive in a no interest rate environment.
So hyperinflation would lead to skyrocketing equity prices, what would it matter when everything else is going up and the dollar completely worthless. With nearly 50,000,000 people in poverty and the middle class barely hanging on with 20%+ underemployment what would higher stock prices do for those not invested in the market, people who cant afford to buy 100 shares of XYZ company will not benefit one bit from higher stock prices and if they did they would be spending it on food and energy so its a lose/lose situation no matter how you look at it. Hyperinflation would bring this economy down extremely hard. Inflation is going to run out of control and there wont be anything BUBBLE ben bernanke can do about it, his easy money policies are destroying this economy and other economies around the world.
But that's not what's happening right now. Money is flowing from employee/employer contributions and the institutional investors are buying up every small dip in the equities market. We're traders here, so we go with the flow. The easy money is in the direction of the trend because programmed trading is designed to follow the trend and you're trading with the money that's moving price. Price won't go straight up forever; it will correct at some point, but right now it's "buy the f*cking dip" Remember last year in late April/early may when price corrected? It didn't happen out of the blue. Price sort of double-topped, then made a lower low. It then left a lower high and then another lower low. This was a potential trend reversal signal. Then Europe spooked the market (something always comes along to spook the market just when things seem their rosiest) and we had a confirmed trend reversal when, by May 5th price couldn't even close above the previous day's "oversold" low. By May 6th, it was clear that all the logical "buy the dip" support zones were getting taken out without no intraday higher lows to build off of, and a full technical breakdown transpired. In the absence of sudden market-moving news, trends give you ample signs they're reversing. There is no reversal sign whatsoever in the current trend.
but zimbabwe the stock market went parabolic when hyperinflation hit and I read the germans holding stock in companies were better off than those holding marks.
its already here. I have been saying for quite sometime that the only way this economy knows how to grow is through the creation of asset bubbles, without the creation of bubbles this economy is completely worthless and thanks to BUBBLE ben bernanke we have a huge amount of asset bubbles growing each and every day, not just here but the entire world is just one big fat fucking asset bubble, thanks BUBBLE ben bernanke
Yes the market can go parabolic but what happens to the millions who are not in the market, ask anyone on the street if they know what a stock or portfolio is, they dont, they have no clue, if hyper inflation does take over and the dow runs to 50,000 or 143,000 the regular little consumer will NOT benefit from this, it will destroy the consumer and the economy as a whole. As I said there are millions of people without a portfolio if prices were to skyrocket how would they be able to afford the cost of living when their dollars are completely worthless.