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

To: Elroy who wrote (75757)	6/8/2024 6:11:10 PM
From: Harshu Vyas	Respond to of 78497

There was a very good doc by the BBC on it that came out a couple of yrs ago that confirms your thinking. At least, with regards to the UK, I think I agree with Elroy here. Rich people had assets and benefited tremendously (and unfairly, perhaps) from QE, ZIRP... poor people definitely didn't. Maybe it's different in the US, but I doubt it. Maybe, at some point, it gets uploaded to YT or the BBC reshow it. BBC Two - The Decade the Rich Won. Highly recommend it. My take on madharry's initial post - He posited that the rate hikes are actually contributing to inflation because the affluent are getting much more for there cash on deposit than they were I'm assuming you're talking about demand-driven inflation because rich people feel richer through better interest income? So, yeah, they may splash out on a nicer vacation, fancy car if they have a material portion of their worth in savings... but surely the effect is minimal overall for the average person? I don't think we're not talking about many industries here, imo. Feels like a reach. Only way I see a resurgence of inflation (which I do fear, by the way) is through higher costs being passed onto customers. That can come from supply chain disruptions, commodity shocks etc. Imo, it'd be more tempting for rich people to reap the fruit of their positions in index funds etc which could be funding what Sisyphus is talking of. Selling now at a period of rampant speculation is something I'd do if I were wealthy and wasn't particularly interested in the market. And, yeah, maybe I'd use the proceeds to splash some cash if I felt I deserved it!

To: Elroy who wrote (75757)	6/8/2024 8:00:27 PM
From: Paul Senior	5 Recommendations Recommended By Harshu Vyas JohnyP Ron Sisyphus Spekulatius Respond to of 78497

"I find it very hard to believe there are many people with MILLIONS of surplus cash, and they had it in 0.5% interest earning accounts a few years ago, and now it is sitting in 4.5% interest earning accounts." That could be so, but now with 5% interest and the market moving up to new highs, many have taken profits, except for maybe MAG7 stocks, sold out fairly-valued stocks that only have a 3-4% dividend, and have gone to short-term savings to await the market coming back down. I, and a couple of others, have mentioned our high cash positions. For me, my cash is at the highest level and highest % of portfolio, that it's been in the last several decades. Given my situation, it's no problem at all for me to believe there are many people who have surplus millions of dollars tucked into 5% money market funds/bank savings accounts.