Uncle8888 is more concerned over future investment losses than inflation! Investing is never a sure way to fight inflation hor!
Which is more scary?
Uncle8888 is more concerned over future investment losses than inflation! Investing is never a sure way to fight inflation hor!
Which is more scary?
Worse is stagflation (inflation + stagnation in economy & employment). That was what happened in the 1970s/80s in many developed economies (Singapore now classified as one), after the OPEC oil price shocks in 1973, followed by the Iran-Iraq war in 1980.
ReplyDeleteLow inflation of the past 2 decades was partly thank to the opening of China.
With irresponsible & selfish money printing by the US (US comes first, similar to vaccine) & decoupling of China, high chance of inflation (hope not hyper-inflation), uncertainty is just how soon this happens.
Despite severe economic contraction, equity markets world-wide over the past year was buoyed by hot money from US funds (just print) [certainty not due to "support" of small retail players like us].
When the US has their economic woes under control, they will up interest to "recover" US$ flowed to the rest of the world. US$ will appreciate against other currencies, so US will get back their US$ cheap, partly cancelling the effect of printing. Of course, raising of interest will be explained as the need to tame inflation (true, but not the only reason). Expect stock market to go through sharp correction when this happens (as the US funds off-load their stakes in the local markets to "go home").
US has done such trick many times in the past, the latest being GFC. STI's correction in 2015 was accompanied by appreciation of the US$