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I am frustrated in that I have money but nowhere to put it, anxious over holding it because of inflation. Just kind of sitting around waiting, losing wealth.
by fullshark 4y ago
I am frustrated in that I have money but nowhere to put it, anxious over holding it because of inflation. Just kind of sitting around waiting, losing wealth.
- trey-jones 4y agoLosing wealth to inflation might be preferable to losing it to equities in the coming months. Obviously nobody knows, but it seems long overdue. There are also positions that are very, very lucrative in bear markets, and I'll assume you know about these, or know how to find out about them.
- mistermann 4y agoI am certainly not aware, any chance you could share a few?
- AnimalMuppet 4y agoDisclaimer: This is not financial advice. Consult a professional (or several), not some random muppet on HN. One way to play it is to buy long-term bonds at about the peak of the interest rates. Bond prices are inversely correlated with interest rates; as rates drop, bond prices rise. The longer term gives you a longer lever for the interest rate move to raise the price. Then, when rates bottom, sell the bonds and buy stocks. [Edit: Because that's the top for the bonds, and usually somewhere around the bottom for the stocks.] The observant will note that this requires you to know when the interest rates are peaking, and when they are at bottom. There are some technical markers that can give you hints, but the reality is that there is no absolute way of determining these things. They turn out to be informed judgment calls.
- deleted 4y ago[deleted]
- trgn 4y agoThis is thermodynamically inevitable, at least, according to this https://en.wikipedia.org/wiki/Wealth,_Virtual_Wealth_and_Debt https://en.wikipedia.org/wiki/Wealth,_Virtual_Wealth_and_Deb... Storing wealth for later is one of the hardest things to do. It is an unsolved problem, even after thousands of years. Capitalism has a strong claim to hint at a workable solution: it formulates a process in which savings can be converted into capital, capital being the lever to increase productivity, thus increasing wealth. Funnily enough, the accountants responded by starting to depreciate the capital assets, bringing it back full circle. It also necessitates capital being deployed productively. And that too is apparently not that easy either, as the current meltdown is showing.
- flyinglizard 4y agoAssets decay. Depreciating them seems more like a decision of a physicist rather than an account.
- smokefoot 4y agoTangible assets decay
- Bubble_Pop_22 4y ago
- puranjay 4y agoHistorically, gold has kept your purchasing power largely intact over long periods.
- waterlaw 4y agoI'm the biggest gold bug ever. Been holding this awful asset for the last 12 years. This is the most manipulated, trash asset imaginable. The price of gold hasn't changed since 2011. It was $1900, still $1900. Worst investment of my life. Maybe 2024 - 2030 will see some returns in gold like we saw from 2001 - 2011. I'll keep investing in miners, because it's what I know and spend a lot of time reading drill results, balance sheets, etc. But diversifying my portfolio. Oil has done particularly well in the past two years. There are many other interesting commodities.
- babyshake 4y agoIt is interesting how 2011 until now lines up with the rise of BTC. Not to say there is causation but there may be.
- deleted 4y ago[deleted]
- puranjay 4y agoI mean my time frame was more like 50 years - assets you can pass onto your grandkids - but you’re fundamentally right if your time frame is 10-15 years
- ycombinator5 4y agoDont forget to buy/rebalance other metals when they seem cheap or gold seems expensive. Palladium has been great. Platinum is cheap now IMO.
- bigDinosaur 4y agoIs looking at gold in terms of it's dollar value actually the point? I thought it was because it's a tangible asset that humans have always valued, i.e. a useful and rare metal, and that so long as people have food and water they'll probably still value it long past the point other assets have become worthless.
- tylerhou 4y agoBuy inflation protected bonds from the government (TreasuryDirect) if you haven’t already.
- ghaff 4y agoWhile a decent recommendation, it has a fairly small cap for someone with a lot of money to invest.
- verve_rat 4y agoAnd only applies to people in the US.
- 55555 4y agoCan anyone explain to me why VTIP and other TIPS/FRNs ETFs have declined over the past year when a basket of TIPs should presumably be more valuable as CPI increases? I’m missing something crucial.