AN, spot on. I don’t personally think we will have substantial inflation. The fed print, while large, is not large enough to make up for the decline in income and demand.
However, my confidence in saying there won’t be high inflation is weak. We’ve simply never had a peacetime deficit anywhere close to this large. And there isn’t much sign of it letting up: Dems want to spend, and Trump and the Senate GOP don’t want a depression as they run for reelection.
Keeping your assets as money could mean both a 5% a year loss because of inflation AND missing out in an inflation-fueled asset bubble. All the while making 1% interest and being taxed on the 1% as ordinary income!
Where to hide out? Real estate! It will benefit from both asset inflation, fed-fueled low rates, and rent inflation. Also, defensive stocks like utilities. My 2nd largest recent buy has been Hanes, HBI. Good economy or bad, people will continue to buy socks, underwear, t-shirts, and athletic wear. I did a deep dive into their financials, and they are pretty strong, and they are not exposed to China as they manufacture mostly in S and SE Asia and Latin America.
