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by kypro
1890 days ago
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Inflation isn't a threat, at least it isn't expected to be outside of YouTube and media scare stories,
https://fred.stlouisfed.org/series/T10YIE Inflation based on the TIPS spread (which is just a market prediction of expected inflation) is basically where its been for years. Secondly, hedging inflation with gold has historically been a bad idea. Unless we see hyperinflation (which doesn't seem likely in the US for a number of reasons) it's far better to put your money in assets which produce value over time like stocks. The problem with gold is that if you're investing in it as a store of value and inflation remains steady at around 2% you're looking at around a 2% annual return which is awful. Crypto could be more promising, not because it's a store of value, but because it's a new asset class currently experiencing mass adoption making it likely to continue growing in value if this trends continue. Personally I'd keep it simple. Invest in stuff you believe in and don't try to be too smart. Predicting inflation before the rest of the market based on things you've heard on YouTube or Reddit then making investment decisions based on that is a good way to make a bad investment decisions. IMO inflation should always be seen as a drag if you're a saver. Any money outside of your reserve fund would probably be better invested somewhere it can appericate in value at a rate above inflation. |
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