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... and what it might mean for a retail investor who mostly buys and holds broad market funds?

• lotsofpulp 7y ago
  It means continue buying and holding broad market index funds because the dollar’s value will be sacrificed to prop up equity’s (stocks, land, etc) value.
  • hcknwscommenter 7y ago
    Do you have any evidence to suggest that the Feds intervention at the short end of the curve is depressing the dollar's value?
    • lotsofpulp 7y ago
      I can't provide evidence that this specific intervention will depress the dollar's value, but since the Fed aims for 2% inflation, I expect my dollars to be worth less every day. https://www.stlouisfed.org/open-vault/2019/january/fed-inflation-target-2-percent https://www.stlouisfed.org/open-vault/2019/january/fed-infla... At least it's been true for quite some time: https://www.thebalance.com/what-is-the-value-of-a-dollar-today-3306105 https://www.thebalance.com/what-is-the-value-of-a-dollar-tod... It seems all invested parties are budgeting at least 7% annual growth in asset prices, from the government's pension fund liabilities to people's 401k and IRAs. Since, voters won't like to see their balances go down, the powers that be will do everything they can to prevent it. And in the absence of a growing young population, I don't see many options other than devaluing currency.
• Spooky23 7y ago
  If you bought into the index lifestyle, live with it.