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at the rate of inflation that is likely to occur over the next several years, holding that much cash is a huge mistake Market expectations for inflation are us
by DavidSJ 15y ago
at the rate of inflation that is likely to occur over the next several years, holding that much cash is a huge mistake
Market expectations for inflation are usually factored into interest rates already. While the market could be wrong, Apple probably shouldn't get into the business of speculating on inflation rates.
- beatle 15y ago>Market expectations for inflation are usually factored into interest rates already. Actually that is not true. Historically Interest rates on currency-based investments have not caught up with inflation and taxes. Majority of Apple's cash is invested in long-term securities though so their investment is protected from inflation.
- DavidSJ 15y agoWhether currency-based investments have historically provided positive real returns is an entirely separate matter from whether it is possible to time investment in currency-based investments based on expected future inflation rates.