Go long on wheelbarrows because people are gunna need ’em to carry their cash down to the grocery.
Nah, it probably won’t be that bad. Hyperinflation (1000%+ per year) only occurs under extreme conditions like war or long-term, deliberate overvaluation. Present circumstances are not that bad. US money printing so far is no where near the level of Venezuela or Zimbabwe.
Some of the inflation we’re seeing really does appear to be caused by overreactions to Covid, with borders sealed, cargo crates sitting in the wrong countries and factories closed or unwilling to invest for increased output given that demand will soon return to normal, etc.
Also consider Japan, where monetary policy has been extremely loose for twenty years and the central bank owns 80% of ETFs. Their main problem is battling deflation.
I also can’t let this article pass without a good-natured snark at right-wing commenters like Zman and Michael Malice (luv yez) who complain that the price of a sandwich, soda and bag of chips has gone up. Boo hoo, there’s too much air in the bag and less soda in the bottle! Shrinkflation I tells ya!
So far we’ve explained the main investment categories, and in a moment we’ll look at how much you should invest in each category, and how to go about doing so. But before we do that, it is essential for you to understand what Einstein supposedly called ‘the eighth wonder of the world’: compounding returns.
So far we have looked at diversifying between defensive and growth assets in order to set an appropriate level of risk.
To further spread that risk, it is essential to diversify within each category, as well. For example, it would be madness to hold only one share. The company might go bankrupt. It is much safer to invest across many shares.
In this section we’ll go through each class of investments and show how to diversify within it in order to manage risk.
The trouble with cryptocurrencies is that few are actually being used as currency. Instead they’re being used for speculation. Transactions that are made, are often transferred immediately back into fiat.
The original inspiration for bitcoin is yet to be realized – unimpeded trade across borders using a stable currency subject to no government control or manipulation.
Perhaps we could get things moving by making a gentlemen’s agreement to use a particular coin or token for trade within the dissident sphere.
Growth Assets 3: Alternatives to Shares and Real Estate
Most people trying to build wealth content themselves with simply investing in shares, or in shares plus their own home. A few purchase an investment property. Such conventional options are fine.
However, there are alternatives. Here I list a few for the more adventurous or unconventional investor. Like enlightenment, there are different paths to financial freedom. If the Roman Catholicism of shares and real estate is not for you, perhaps these Hare Krishna options might be of interest.