Warning - Inflation, Hyperinflation, Stagflation coming

Discussion in 'Economics' started by Fx-Game, Apr 14, 2020.

  1. Fx-Game

    Fx-Game

    As many may know, we are facing a great recession during the next months.

    However, it is more than likely from todays perspective, that we also will have an inflation.

    The FED has now published a report, that shows that during the last 600 years, and after each virus outbreak, company wins very much decline, while salaries grow.

    What doest that mean?!

    That means that the prices also start to grow!

    Especially, when there are some production or delivery issues.

    Now, that south korea said that already 'cured' people again got sick by the virus, it may mean that until there is no cure developed, people will have to obey distance rules, stay at home [not consume], have trouble in getting new jobs, etc.

    Only max. 5% of the european or american population have been sick until now, and still the virus has brought communities to their peak of what they can take...


    So, if we get some production and delivery issues here, together with the inflation and big losses of companies and a huge debt of states, it is time to maybe park your money in some safe havens.


    What can that be?!

    - Safe currencies like chf, aud, cad, nzd, gbp but also rub as it is covered by much gold [that was bought by the russian government in big style]

    - Gold, Silver, Omnium, Iridium - very rare metals.

    - Jewels

    - Your own real estate with preferably some sort of garden, where you can grow plants etc.

    - Stocks from very big companies, that will forever survive.
    Especially from this 3 sectors: Food (Production & Distribution), Military & Defense, Pharmaceutics
    It's important to own these stocks; ETF, fonds etc are not enough.

    Just my 2 cents...

    Take care.
     
    Last edited: Apr 14, 2020
    zdreg likes this.
  2. maxinger

    maxinger

    The way I see, it should be

    opportunity coming! Inflation, Hyperinflation, Stagflation coming.

    Good thing for traders; we don't fear inflation, hyperinflation, stagflation. We only fear flat market which has no good / bad news.
     
  3. Fx-Game

    Fx-Game

    Yep,

    but if your main currency is US dollar or Euro, and you face an inflation there while not being invested (in stocks), it may hurt.

    Even if you trade currencies; you get your money paid back in your own currency.
    So, where is the profit then...?

    Solution is to have trade accounts that are based on a different currency, that is preferably stable and not inflationating.
     
  4. maxinger

    maxinger

    right. It make sense to have trading accounts in various currencies.
     
    AKUMATOTENSHI and Fx-Game like this.
  5. Fx-Game

    Fx-Game

    Just by the way:


    Governments are now reaching all time highs in debt; the US 2.3 trillion (new), the EU is now said to fund a fond with 1.5 trillion, addtionally to the 500 billion (which makes 2 tril.).


    Many south european countries for example had big tax income and a big fraction of their economy because of the tourism.


    Now this year, these southern countries that already have problems with their debt, will get even more problems as no one is travelling...

    This will play out negatively on tax income for states and raise unemployment by a big factor.
     
  6. I bet a truckload of beer that salaries won't grow, but decrease because of excess in supply of HR. Its globalization for you, my friend.

    And as ex-Forextrader my heart cringes if you consider AUD, CAD and NZD as safe currencies. They are the risk-on currencies if you know what that means. There is only 3 "really safe" currencies in they eye of a Forexeer: CHF, JPY, USD. If the world has a problem, every currenciy but those 3 will have a problem. You can add XAU if you like, I don't.
     
    Last edited: Apr 14, 2020
    Fx-Game likes this.
  7. Fx-Game

    Fx-Game

    What about GBP?

    Btw, yes, I also think there won't be an increase of wages and salaries, still the danger of inflation is inherent.

    But if we get problems in production or supply chains, it'll be harder.
     
  8. Sig

    Sig

    What report? Link?
     
  9. zghorner

    zghorner

    Thank god for $GLD
     
  10. toc

    toc

    Have Gun, Will Travel !!
     
    #10     Apr 14, 2020