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If a stock is worth 100 and priced in dollars
Then the 30% inflation over time means the stock will now be worth 100/(1-0.3)=$142 all things being equal
This only works if your entire finance world is in dollars which is the case for most of us.
Additionally, US exports will be much cheaper overseas. I bet if a washing machine shows up in Senegal stamped with "Made in the USA" and is priced right... the US will dominate without much real competition.
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RockHardConservativeThe gains are forever! Zoomers priced out!
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That was true under ZIRP but not any longer. You will be happy with your 10Y note at 5.25% when the AI collapse is in full swing.
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RockHardConservative wrote:
The gains are forever! Zoomers priced out!
Zoomers will do well currently they have a lot of debt that will be inflated away.
The people who will suffer are low wage workers with little in the way of assets (and of course people who live beyond their means but that's true no matter what.)
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wrote:
That was true under ZIRP but not any longer. You will be happy with your 10Y note at 5.25% when the AI collapse is in full swing.
Did you even read my post?
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