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Yes in fact the only thing you wouldn't want to hold is dollars; you'd want to hold things that will earn more dollars in the future (an inflation hedge), such

Yes in fact the only thing you wouldn't want to hold is dollars; you'd want to hold things that will earn more dollars in the future (an inflation hedge), such as equities. Then you'd only care about FX rates (to the extent you are purchasing internationally), and I don't see any indication the FX futures market is moving against the dollar.

silicon2401 7y ago
if holding onto dollars right now is bad, could you suggest what would be a good place to put cash?
- alexpetralia 7y ago
  I did use the conditional "would" because I don't think the market is actually expecting inflation, which would erode the value of dollars. Expected inflation can be calculated as the difference between a Treasury and a TIPS of the same tenor - say 5 years. Treasury yields: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield https://www.treasury.gov/resource-center/data-chart-center/i... TIPS: https://www.wsj.com/market-data/bonds/tips https://www.wsj.com/market-data/bonds/tips So 5 years out, the expected inflation is .37 - (-.418) = .788%; pretty low. In other words, the market doesn't expect all this money printing to translate into general inflation (as measured by the CPI). Personally I would be dollar-cost averaging into equities.
- elliotec 7y ago
  I don't think they're strictly saying holding dollars is bad right now, just that it could be if inflation became a thing, which is not happening because as said by someone else, almost all other currencies are in the same boat. Plus everything is based on the dollar in the world economy. To answer your question though, if we were in a place where keeping cash was becoming a problem, that's where assets come in like stocks, bonds, real estate.
- mixmastamyk 7y ago
  Gold and assets that won't go to zero, essential companies and real estate. Just don't expect them to not get hit as well in the short term.

silicon2401 7y ago

if holding onto dollars right now is bad, could you suggest what would be a good place to put cash?

alexpetralia 7y ago
I did use the conditional "would" because I don't think the market is actually expecting inflation, which would erode the value of dollars. Expected inflation can be calculated as the difference between a Treasury and a TIPS of the same tenor - say 5 years. Treasury yields: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield https://www.treasury.gov/resource-center/data-chart-center/i... TIPS: https://www.wsj.com/market-data/bonds/tips https://www.wsj.com/market-data/bonds/tips So 5 years out, the expected inflation is .37 - (-.418) = .788%; pretty low. In other words, the market doesn't expect all this money printing to translate into general inflation (as measured by the CPI). Personally I would be dollar-cost averaging into equities.
elliotec 7y ago
I don't think they're strictly saying holding dollars is bad right now, just that it could be if inflation became a thing, which is not happening because as said by someone else, almost all other currencies are in the same boat. Plus everything is based on the dollar in the world economy. To answer your question though, if we were in a place where keeping cash was becoming a problem, that's where assets come in like stocks, bonds, real estate.
mixmastamyk 7y ago
Gold and assets that won't go to zero, essential companies and real estate. Just don't expect them to not get hit as well in the short term.