Is the Fed artificially keeping the inflation rate near 2%?

Discussion in 'Economics' started by farmerjohn1324, Jan 4, 2020.

  1. As you all should know, one of the fed's main jobs is to keep the inflation rate at close to 2%. Is this an arbitrary number? In that case, could it create investment opportunities because they are creating a fake situation in which inflation is mandated to stay near 2%? Similar to how people have found investment opportunities when one country chooses to peg their currency value to that of another country. This creates a fake situation and it will create investment opportunities when this fake situation unravels itself.
     
  2. richDude

    richDude

    over thinking it... all you need to do is buy buy buy.
     
    nooby_mcnoob likes this.
  3. That's not trading at all.

    Unless you're just suggesting you keep your day job, or try to live off dividends.
     
  4. richDude

    richDude

    why is it not trading. any buy order is trading.
     
  5. Because you don't make money until you sell.
     
  6. richDude

    richDude

    so has Warren made any money on his stuff he has held for many years/decades?
     
  7. Profits from his fully owned businesses and dividends.
     
  8. richDude

    richDude

    say he bot COKE from decades ago at $10... so he hasn't made any money other than the dividends, until he sell these shares?

    what about the real estate guys, some of them keep doing 1031 exchange from a $50000 small house all the way up to a $1m property, so that guy hasn't made any money either.

    you gotta let go of this fallacy that some grandpa told you 30 years ago. open profit is the same as closed profit, except it's even better because it is not taxable yet.
     
    Wheezooo likes this.
  9. Well either way...

    I have better places to put cash to make it grow faster than the stock market would. And I would get the cash back and be able to do it again at least once per year.

    So only leveraged trading interests me because that's the only way I could beat those returns. But that sounds more and more like gambling to me now.
     
  10. Wheezooo

    Wheezooo

    He's correct, you're incorrect, and this last response of yours was shamefully irrelevant to the argument.
     
    #10     Jan 4, 2020