Quote:
Originally Posted by tophcfa
I am sick of hearing the excuse that inflation is because of Covid, supply chain shortages, or the Russian invasion of Ukraine. The biggest misleading statement is that current inflation is transitory, unless transitory means several years? All those excuses were merely triggers that set off the inevitable hyper inflation caused be irresponsibility. Because of this incredible irresponsibility, the Federal Reserve doesn’t have the tools at it’s disposal necessary to combat inflation like it did back in the early 1980’s. Not trying to be an alarmist, just a realist. An economy fueled by cheap money and debt is going to eventually crash and burn. Buckle up for a long and bumpy ride.
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hyperinflation is usually preceded with a highly devalued currency, or very weak currency in a highly connected world. given the USD strength, not quite sure that hyper inflation is in the cards, given that the US has the most resilient economy in the world due to large diversified and creative environment.
granted that the stock market valuations will return to earth, which is NOT the economy, and the sh1tcos with stupid valuations versus highly negative cash flows and insolvencies should and will crash, (CVNA is one that is the poster child today) the market will correct and then inflation will drop back to 2-4%.
But CDs are repackaged T bonds with the banks taking a cut. . never invest in CDs at a bank any more. Learn to use treasury direct to buy treasury bonds, and keep them at your brokerage account, where you can sell them if desired/needed. Learn about TIPs bonds versus standard treasury bonds. . . learn about high quality dividends ETFs for diversified stock market income, SPYD, XLU for utility income, which is partially guaranteed by government statute, and REITS / Oil&Gas royalty trusts. . . no need to buy individual stocks for dividends because the individual equity risk is much higher than a diversified portfolio for simple management.
40% stocks /60% bonds has been the most ideal portfolio for the last 40 years, now its a different style investment regime, more focused on low bond interest rates and more towards very conservative equities and other equity like yielders
good luck walking in the investment jungle