Why rushing out of market to take profits or cut losses to fight inflation?
Gurus always tell us to stay invested to fight inflation??? How come like that? Stay in cash to fight inflation???
Monday. STI crashes 2%?
OK. OK! How Scary Is Inflation???
Why rushing out of market to take profits or cut losses to fight inflation?
Gurus always tell us to stay invested to fight inflation??? How come like that? Stay in cash to fight inflation???
Monday. STI crashes 2%?
OK. OK! How Scary Is Inflation???
Uncle8888,
ReplyDeleteThere's inflation in COEs, hawker centres & electricity bills.
Deflation in stock markets.
Confusion in investors.
Gurus are half-right. Cash is trash in the long run. Cash is gold in the short run.
But long-duration investments will be crushed during inflation i.e. profitless hype stocks, long-maturity bonds, companies with high debts, and even good but rosy-valued stocks.
So far this inflation is very different from the 1970s in 1 big sense ... the US Dollar is booming.
US Dollar index has jumped 15% in 1 year ... a huge move for currencies. No wonder gold hasn't chiong up like the 1970s.
SGD has declined 4.6% against USD over the past year. Still one of the strongest currencies in the world.
Maybe time for USD to roll over. Who knows? Lol.
Nice one Spur!
Delete"There is inflation in COEs, hawker centres and electricity bills
Deflation in stock markets
Confusion in investors"
What is a person to do?
Those who are working still can hope for salary adjustment but, but retirees?
Invest in shares with rising absolute dividend $ yearly (aristocrats) to fight inflation?
ReplyDelete