4 ms·

The question is: what investment options are there for a savings-rich population in an environment of high inflation? Get ripped off gambling in the rigged casi

The question is: what investment options are there for a savings-rich population in an environment of high inflation? Get ripped off gambling in the rigged casino that is the stock market? Buy bitcoin? It's no surprise housing is going crazy. Does anyone expect there to be a new, stable investment opportunity come into existence in the next 10 years? I wish it were different.

alliao 5y ago
that is the end game for fast information highway huh, anything of remote value can have it's price carried forward instantly, and junk everywhere resulting in glut of cash ready to pounce on the next valuable thing. the best one can do is hold on to something keeps value I guess, by trading, hedging, real estate, and not sure if it's hip, gold?
- reducesuffering 5y ago
  More like the current game for negative real interest rates. Suddenly anything that holds equivalent value 10 years out is worth much more than current $ which will depreciate by then.
tpxl 5y ago
The same it's been for the past 50 years, buy an ETF and be done with it.
- criddell 5y ago
  Which ones?
  - reducesuffering 5y ago
    US total market ($VTI) and International total market ($VXUS). You could slightly bet on value ($VTV) for having better current profits (P/E 20 means effectively 5% real interest w/o growth) and typically doing better in rising rate environments (many banks in the index which have better profits on larger interest rate spreads).
  - tpxl 5y ago
    Something with a high spread on the market (ie SP500/SP100/FTSE) will generally give you good returns over time. The trick is to be consistent, not micromanaging and not worrying. It took 5 years for sp500 to catch up to pre-2008 levels, then another 4 years to double, so in the long term, market crashes aren't a problem. It's good to read about it a little bit or pay someone to tell you what to do (200$ for a session won't matter much in 10 years). Ie where I live, the longer you have stocks the lower taxes are (20% at 0 years, 0% years), so it makes sense to invest in the long here, and you want to get funds that reinvest the dividends (Accumulating funds) so you don't have to pay taxes on the dividends every tax period.
  - webinvest 5y ago
    ARKK (Ark Invest’s primary activity managed ETF. Has a sweet December dividend coming up!) VFMF (Vanguard’s higher growth, lower valuation S&P500 ETF. However has low trading volume.) ESGV (Vanguard’s Environmental Social Good S&P500 index. Make good money for retirement while retiring in a world you want to live in) XHB (SPDR S&P500 Homebuilders ETF. There’s clearly a housing shortage, so here’s a direct way to help the world build more homes. Disclosure: I am medium/long-term invested in all of these.
googlryas 5y ago
They could invest in creating new small businesses?
pietrovismara 5y ago
I don't know, perhaps they could actually create some value, rather than profiting off speculation. That would be a good start.
matwood 5y ago
In an inflationary environment you want assets. 30 year fixed mortgages are a great way for a regular person to get a levered asset. SPY would be next on my list followed by a little bit of BTC and ETH if someone wants to be more risky. Investments by their nature are not 'stable'. Investments pay off because there is risk involved.
- gfodor 5y ago
  It's hard to say if BTC and ETH are assets, but they do have a very favorable exchange rate vs USD so will go up like other currencies relative to the dollar if sufficiently decoupled. Asset-wise, the crypto analog are NFTs, yield tokens, or other inherently scarce or income generating entities.
  - matwood 5y ago
    Good point. Any of those work, but can be harder for the average person to figure out. The point is don't be hanging out with too much USD.
    - harambae 5y ago
      I would hold onto USD before NFT's (which are just a scam IMO) But to each their own.
gfodor 5y ago
I definitely expect there to be a ton of stable investment opportunities in crypto (DeFi, NFTs, etc.) Of course, the problem is you can't know now which one of these are that vs ones that will go to zero.
- deleted 5y ago
  [deleted]

alliao 5y ago

that is the end game for fast information highway huh, anything of remote value can have it's price carried forward instantly, and junk everywhere resulting in glut of cash ready to pounce on the next valuable thing. the best one can do is hold on to something keeps value I guess, by trading, hedging, real estate, and not sure if it's hip, gold?

reducesuffering 5y ago
More like the current game for negative real interest rates. Suddenly anything that holds equivalent value 10 years out is worth much more than current $ which will depreciate by then.

tpxl 5y ago

The same it's been for the past 50 years, buy an ETF and be done with it.

criddell 5y ago
Which ones?
- reducesuffering 5y ago
  US total market ($VTI) and International total market ($VXUS). You could slightly bet on value ($VTV) for having better current profits (P/E 20 means effectively 5% real interest w/o growth) and typically doing better in rising rate environments (many banks in the index which have better profits on larger interest rate spreads).
- tpxl 5y ago
  Something with a high spread on the market (ie SP500/SP100/FTSE) will generally give you good returns over time. The trick is to be consistent, not micromanaging and not worrying. It took 5 years for sp500 to catch up to pre-2008 levels, then another 4 years to double, so in the long term, market crashes aren't a problem. It's good to read about it a little bit or pay someone to tell you what to do (200$ for a session won't matter much in 10 years). Ie where I live, the longer you have stocks the lower taxes are (20% at 0 years, 0% years), so it makes sense to invest in the long here, and you want to get funds that reinvest the dividends (Accumulating funds) so you don't have to pay taxes on the dividends every tax period.
- webinvest 5y ago
  ARKK (Ark Invest’s primary activity managed ETF. Has a sweet December dividend coming up!) VFMF (Vanguard’s higher growth, lower valuation S&P500 ETF. However has low trading volume.) ESGV (Vanguard’s Environmental Social Good S&P500 index. Make good money for retirement while retiring in a world you want to live in) XHB (SPDR S&P500 Homebuilders ETF. There’s clearly a housing shortage, so here’s a direct way to help the world build more homes. Disclosure: I am medium/long-term invested in all of these.

googlryas 5y ago

They could invest in creating new small businesses?

pietrovismara 5y ago

I don't know, perhaps they could actually create some value, rather than profiting off speculation. That would be a good start.

matwood 5y ago

In an inflationary environment you want assets. 30 year fixed mortgages are a great way for a regular person to get a levered asset. SPY would be next on my list followed by a little bit of BTC and ETH if someone wants to be more risky. Investments by their nature are not 'stable'. Investments pay off because there is risk involved.

gfodor 5y ago
It's hard to say if BTC and ETH are assets, but they do have a very favorable exchange rate vs USD so will go up like other currencies relative to the dollar if sufficiently decoupled. Asset-wise, the crypto analog are NFTs, yield tokens, or other inherently scarce or income generating entities.
- matwood 5y ago
  Good point. Any of those work, but can be harder for the average person to figure out. The point is don't be hanging out with too much USD.
  - harambae 5y ago
    I would hold onto USD before NFT's (which are just a scam IMO) But to each their own.

gfodor 5y ago

I definitely expect there to be a ton of stable investment opportunities in crypto (DeFi, NFTs, etc.) Of course, the problem is you can't know now which one of these are that vs ones that will go to zero.

deleted 5y ago
[deleted]