How are you dealing with inflation, anons? If the dollar truly starts plummeting worldwide, will having money in stocks (US companies primarily) protect my networth? Are international companies a better investment, or would US companies pivot to whatever the new reserve currency ends up being long term? They didn't teach us how to prepare for this in school
>>58445987You're talking about a few different things at the same time.For local inflation there are tons of ways to protect your purchasing power long-term, stocks being one of them. Inflation tends to be low for long periods and then have very high spikes which is what we've seen recently. But stocks and even bonds of the right duration protect against this in the long term.USD being used internationally is a totally different question. It's likely that USD will be deprioritized in international use and reserves going forwards, but there's definitely not going to be a sudden switch to something else because there's just no other possible option.USD being used gradually less internationally won't make much of a difference to you living in the US. Maybe it would cause inflation to slightly chronically increase, but you can protect against that with stocks (especially international ones).>would US companies pivot to whatever the new reserve currency ends up beingThere's no scenario where US companies stop using USD unless the government is overthrown which will rug the stock market anyway. There's nothing else suitable to use, and the government will keep demanding taxes in USD.
>>58446069so what is the play here - if I have 20k in debt (auto + student loans) should I just make a mad dash to invest every single thing I can in the stock market to try and hang onto my purchasing power while paying the minimums of my debt until inflation comes down and we begin to cut rates again? like your strategy is all well and good for someone whos already established in the stock market but I'm just barely starting out
>>58446076>should I just make a mad dash to invest every single thing I can in the stock market to try and hang onto my purchasing power while paying the minimums of my debt until inflation comes down and we begin to cut rates again?It depends on your income, expenses and the interest rates on your debt. If you don't have some cash as an emergency fund then I wouldn't invest in stocks or make more than minimum payments on debt.>until inflation comes down and we begin to cut rates againInflation pretty much has come down to 3-4% now which is pretty normal (prices won't go down, that would be negative inflation). It's just currently actively being held down by the increased rates which will have to be raised for a while longer.I get the impression that you're not worrying about the right thing though. You should worry about this sort of problem if your net worth is big compared to your earned income. If you're feeling poor right now it's because of your income and expenses right now, and trying to scrape together money for stocks that preserve wealth in the time frame of 10-20+ years won't help. I'm not sure that's what's happening, but I'm guessing so based on the 20k debt. The high inflation from the past couple of years might be why you feel financially tight now, but it's an income rather than investment problem.
>>58446117Thank you for taking the time to reply anon, it just seems like a really shitty time to be entering into the work force. Out of curiosity what do you make out of this? Is this doomposting or is there some validity to this? https://twitter.com/Cole_Walmsley/status/1786491323828048078
I'm not, my pay has increased but my quality of life decreased. Hopefully I can make some bread this cycle. (BTC, FTM, PEPE, SQUID, BANANAS etc)
>>58446126>Is this doomposting or is there some validity to this? A bit of both I'd say. There definitely is a potential viscous cycle between government interest payments, more debt to fund them and inflation meaning that the debt is less attractive and hence more expensive. Inflation as people experience it is not entirely down to the money supply; economic growth (which "fills out" the expanded money supply) and money velocity (if everyone just saves their printed money nothing increases in price) also matter.Inflation hit after lockdowns ended a year or two after the money supply increases because opening everything increased the money velocity back to pre-rona levels. The velocity of money has been dropping long-term, and this continuing is the assumption that keeps it all hanging together.The case against this is looking at what markets are actually expecting and pricing in the long term; at the moment the market is expecting US inflation to be less than 2.36% averaged over the next 30 years. 30 year US bonds are more expensive than they've been in a while but aren't historically expensive. I'd expect hedge funds and government forex buyers and the like to be able to model this better than I can, and they don't seem very worried about the dollar in the long term.On the other hand the markets are pricing other currencies as generally less risky long-term (especially the euro and yen), and China has been moving more towards gold than USD reserves. But that might be about avoiding sanctions than being concerned about the currency.On the whole I'm not that worried, but this is why I have some BTC.
>>58446069>you can protect against that with stocks (especially international ones).like what ? europe? japan is shitting the bed too, china not doing much better
>>58446409I'd say everyone's stock allocation should be globally diversified weighted by total market cap, there are various index trackers that do this.>europe? japan is shitting the bed too, china not doing much betterHow a country's stocks have done fairly recently doesn't tell you about how they'll do in the future, especially long-term. You want to diversify so you can realize the equity risk premium over time without exposing yourself to uncompensated risk from a region or market sector.
>>58445987You can literally do the same with any politician.>Lmao trump said a guy's wife is ugly lmao epic win!Performative politics should be treated with a noose or hard labor.
>>58446442>How a country's stocks have done fairly recently doesn't tell you about how they'll do in the futurethis has to be one of the biggest memes ever. yes it pretty much does
>>58446126Just had a cursory look over the post and I think what this person is saying will all come true but consider that people have known that the endgame is inevitable for like 40+ years and it still hasn't hit yet. Just because something is inevitable doesn't mean it's imminent. It's a long slow complex process. The powers that be, globally, are constantly trying to save face and keep the ball rolling. Every time a crack appears in the system they plaster it. The duration between craks is average decreasing and the severity of the cracks is ave increasing but the short term fixes can smooth things over for years even. So assume globally fiat will fall to bits and debts will spiral uncontrollably, but live day to day and prepare for short-term movements. Make sure you stay hedged and pull profits when they appear. That's not just investing advice that's life advice.
>>58447417What data makes you think that?There are endless examples of countries outperforming for 10 years or more at a time before having a period of underperformance. Japan returned around 20% between 1980 and 1990 and was a larger market than the US at the time. Should you have gone all in on Japan then?
>>58445987Did they really wheel out Mark Hamill for a white house press event? That's fucking wild. The pentagon, everybody.
>>58445987>How are you dealing with inflationthat's the thing, I don't, I just complain about prices all the time while hoping my biao bag will save me from all this catastrophe and make me a millionaire somehow, I just like complaining
Historically during periods of sticky inflation, gold (and now bitcoin too) performs well in both nominal and real terms. Sticky inflation leads to reduced purchasing power which negatively impacts most companies, so stocks usually trade sideways in nominal terms but lose value in real terms as inflation continued to chip away at the currency. It seems like nobody gives a shit about history anymore and will put their money into anything besides their rapidly devaluing currency, because most people seem to believe that the high interest rates will lead to another round of QE-on-steroids once systemic risks begins to appear. If governments are left with the option of choosing either high inflation for longer, or a serious risk of the financial system going under, they will always go for the least painful option, which is inflation
Well, I work, 8 to 4. I cook my own food, (if you actually know what you are doing you actually save a lot of money).I deal in crypto mainly and, surprise suprise, I do play web3 games, all of them on superverse. Mostly just grinding and buying and selling tokens. Also no wife no kids that saves you a lot of money.
>>58448664but HOW do you deal with inflation?
>>58448664I just save money in crypto. btc and some alts. not much, most of it I just game.
>>58448666sounds like you have your shit together.
>>58445987>How are you dealing with inflationmy node just confirmed the subsidy cut my other node verifies the fee burn occurring, so sometimes emission is negative
>>58447513the US stock market has more than 10 years of history. zoom out
>>58445987>How are you dealing with inflationbasically all my us dollars are in crypto rn, it could be btc, lrds, ltc, eth, etc
