If inflation starts to ramp up why stay cash?

Discussion in 'Economics' started by noob_trad3r, Aug 17, 2011.

  1. Why put money in 10 year notes that earn 2.2% when and my money lose value VS buying lets say SPY that warns a yield of 2.1%

    At least with inflation assets appreciate and cash loses value.
     
  2. kashirin

    kashirin

    the only problem SPY down since the start of the year by 4%

    and bonds up 15%.

    So if you follow you logic you lost at least 20% in 6 months
     
  3. morganist

    morganist Guest

    Isn't this why everyone is buying gold?
     
  4. I am not thinking 6 months I am thinking 25 years.
     
  5. because when gold was expensive in the late 70s early 80s they did real bad compared to someone who was buying the S&P 500 basket it seems.

    why do I want to repeat history?
     
  6. Tsing Tao

    Tsing Tao

    Yeah, well historically, the S+P at this level offers little return over the next year or two.
     
  7. morganist

    morganist Guest

    The other economic factors are not the same. I would look at the surrounding factors that support the S&P and question whether they can be sustained. Gold demand is high not from solely American demand but global demand. It will have growth from elsewhere.