3 ms·

... why reduce debt? Nothing is better for devaluing your debt as inflation. It makes it worthless. The question is whether there will be a significant inflatio

... why reduce debt? Nothing is better for devaluing your debt as inflation. It makes it worthless. The question is whether there will be a significant inflation at all. I doubt it, since lot of assets were burned recently in the market drop so there is actually missing liquidity. US could easily face the problem of deflation rather then inflation in the near future. A well balanced portfolio of your investments is the best what you can do in long term. It is hard (if impossible) to time the markets. A well balanced portfolio generally means: 60% equity, 30% bonds, 10% alternatives (including gold).

kingkongrevenge 18y ago
This only works out if there is WAGE inflation. It is very possible for inflation to run rampant while nominal wage growth trails far behind. This is probably the most likely scenario. Have fun paying off your devalued debts with an income of $0, because you're unemployed. In the intermediate term, asset deflation will probably be the dominant force, even if consumer staples continue to inflate somewhat. The very high general inflation is in store for later.