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This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from over

This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ?

ren_engineer 5y ago
>I wonder though what happens now, is hyperinflation a real possibility It will happen if the Dollar loses global reserve currency status. China, Russia, and a few allies could pull the rug out from under the US pretty easily. A lot of countries are tired of the US exporting their inflation
- mostlysimilar 5y ago
  Would you mind expanding a little on this for me? I'm curious but don't know much about this topic. If having reserve currency status gives a country a tool of "exporting inflation" and countries are tired of the US doing it, it seems unlikely those countries would willingly put that tool in the hands of Russia or China, whom they presumably trust much less. (Assuming we're talking about western Europe.) Devil you know or devil you don't?
sleepingadmin 5y ago
>This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ? Hyperinflation is defined as 50% inflation per month. https://tradingeconomics.com/united-states/money-supply-m2 https://tradingeconomics.com/united-states/money-supply-m2 Inflation has roughly 40% locked in; which will push out over a few years. Hyperinflation isn't in the cards. https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 Then you look at M1 and it's like... well could happen but it's not locked in yet.
deleted 5y ago
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mvkel 5y ago
If it was expected, then the market has already priced it in. The indexes are masking it. A lot of companies under the hood are down 50%
vmception 5y ago
If you have hyperinflation then your stock market is going to overheat and bust through the top of your chart over and over again! :)) History books focus on the bread lines, but if you dig deep enough you can find the stock market charts and they are epic! The capital class made so much bank and dipped out, just remember to actually leave because the people come for you.
- jhallenworld 5y ago
  Yeah, it crashes up. Argentina is a good example of this for the their market in 1989-1990. https://www.ceicdata.com/en/indicator/argentina/equity-market-index https://www.ceicdata.com/en/indicator/argentina/equity-marke... (click max)
  - vmception 5y ago
    yeah, beautiful! have capital! never not have capital!

ren_engineer 5y ago

>I wonder though what happens now, is hyperinflation a real possibility It will happen if the Dollar loses global reserve currency status. China, Russia, and a few allies could pull the rug out from under the US pretty easily. A lot of countries are tired of the US exporting their inflation

mostlysimilar 5y ago
Would you mind expanding a little on this for me? I'm curious but don't know much about this topic. If having reserve currency status gives a country a tool of "exporting inflation" and countries are tired of the US doing it, it seems unlikely those countries would willingly put that tool in the hands of Russia or China, whom they presumably trust much less. (Assuming we're talking about western Europe.) Devil you know or devil you don't?

sleepingadmin 5y ago

>This was expected. I wonder though what happens now, is hyperinflation a real possibility. Is it really sensible to expect consistent positive returns from overall stock market this decade unless doing some active investments ? Hyperinflation is defined as 50% inflation per month. https://tradingeconomics.com/united-states/money-supply-m2 https://tradingeconomics.com/united-states/money-supply-m2 Inflation has roughly 40% locked in; which will push out over a few years. Hyperinflation isn't in the cards. https://tradingeconomics.com/united-states/money-supply-m1 https://tradingeconomics.com/united-states/money-supply-m1 Then you look at M1 and it's like... well could happen but it's not locked in yet.

deleted 5y ago

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mvkel 5y ago

If it was expected, then the market has already priced it in. The indexes are masking it. A lot of companies under the hood are down 50%

vmception 5y ago

If you have hyperinflation then your stock market is going to overheat and bust through the top of your chart over and over again! :)) History books focus on the bread lines, but if you dig deep enough you can find the stock market charts and they are epic! The capital class made so much bank and dipped out, just remember to actually leave because the people come for you.

jhallenworld 5y ago
Yeah, it crashes up. Argentina is a good example of this for the their market in 1989-1990. https://www.ceicdata.com/en/indicator/argentina/equity-market-index https://www.ceicdata.com/en/indicator/argentina/equity-marke... (click max)
- vmception 5y ago
  yeah, beautiful! have capital! never not have capital!