We’ve experienced excess liquidity for years and I would contend inflation. Just because the government’s inflation index doesn’t show a large number doesn’t mean inflation doesn’t exist. Pick another measure!
Commodity prices have skyrocketed. Asset prices (RE) have skyrocketed. Energy, the ultimate tax, has shot up. Food prices are much much higher. The dollar is sort of weak…
It’s only a matter of time before all the evidence mounts up and shows up in the government’s index. I favor the inflation side of the arguement. I hesitate to buy gold however as it’s already very high. I may be moving some $$$$$$$ into gold stocks though rather than cash. Long dated maturity notes are the last place I would put any $$$$… perhaps TIPS?
