3 ms·
Assets can already rise 30% in anticipation of 5% inflation above risk-free interest for 6 years. Then you can buy in right at the time that interest rates rise
by reducesuffering 5y ago
Assets can already rise 30% in anticipation of 5% inflation above risk-free interest for 6 years. Then you can buy in right at the time that interest rates rise to counter that inflation. Congrats you've just purchased assets that now drop due 30% due to interest rate increases at the same time you're margin loan interest increases to 5% to hold it.