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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (69536)	1/14/2022 1:50:15 PM
From: Elroy	Read Replies (2) \| Respond to of 78954

I think you need to retake ECONOMICS 101, and also do some more reading about the effects of INFLATION which primarily occurs when more "printed" money floods the economy and chases much the same amount of goods. Yes, inflation is a potential negative result of too much spent on too few goods. I thought you were talking about the risk of excessive debt issuance, as in the issuer may go bust. The US has traditionally had a fairly dynamic economy which responds better than most to price increases. If some sector is experiencing rapidly increasing prices, companies will enter and increase production and try to grab the profits while they can. Time will tell if the current price explosion (prices up 7%) is temporary, or not. In my area the minimum wage (in retail and food jobs) seems to be around $20 per hour, and places can't find enough workers at that price. So.....even if inflation is 7%, wage rate growth seem like more than 7%, so voila, we got growth. Workers can afford stuff that costs 7% more than before when their wages are 15% more than before. And.....companies will hopefully compete and push prices down, but wages, once they go up, it's hard to get them back down (unless we increase the labor supply, and that doesn't happen quickly). As for the rest of economics, it's just a theoretical guess which works 40% of the time, right? Come on, economists predictions and models aren't worth much more than a dart throw I think. What we can say is that this year people will want to eat corn...... All of this is anecdotal by the way. Most here are investors, so I doubt anyone with excess cash has it stored in a bank. It's usually stored in stocks and mutual funds (or crypto!!), and some of those investments benefit from inflation. Such as ...... fertilizer! UAN almost hit $100 today, where's the guy (Mr. Privately) that wanted me to shut up about it when it was $20, is he here or is he on one of the income/dividend investing boards? Sorry for bothering you about UAN at $20 Privately!