Lets say the dollar becomes garbage.

Discussion in 'Economics' started by noob_trad3r, May 4, 2009.

  1. Like Zimbabwe dollar with all the money being handed out. Wont that make equity valuable?

    Dollars are backed by nothing but equity at least has some kind of tangible value ie: capital equipment, service revenues etc..

    a dollar is just a paper with nothing backing it.

    So would the right thing to do is buy more stocks now?
  2. Yes ... but keep in mind you will only earn more dollars for your investment. As the dollar deteriorates and we migrate to a barter economy, commerce will suffer, thus even your dollar earnings.

    Dollar depreciation will be manifest in waves. Now it is apparently equities. Hard assets will have their turn, which will herald inflation and higher interest rates. So equities will go full circle.