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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?


To: ajtj99 who wrote (65064)7/12/2022 11:13:55 AM
From: Lee Lichterman III2 Recommendations

Recommended By
ajtj99
Real Man

  Read Replies (1) | Respond to of 97572
 
I agree that inflation "could" be temporary as long as excess liquidity is drained. Much of it is due to temporary shocks like supply/transportation issues, the war etc but prices are sticky as they teach so it needs to get reigned in quickly. The rest of the inflation is from the doubling of the money supply and artificially low interest rates that fueled an everything bubble even before those temporary shocks occurred.
There's a bubble mindset now that everyone thinks is normal. Read around SI and everyone wants zero rates, liquidity injections blah blah blah. Stock pickers and traders thought they were geniuses because everything went up. Now they're having to work at it and they aren't doing very well. I've been watching these gurus buy all the way down and they're going broke.
The Fed needs to break this buy the dip, valuations don't matter, earnings don't matter mindset so we can get back to a healthy economy that isn't dependent on layer upon layer of leveraged debt.