inflation
Why is China Facing Inflation?
Submitted by Van Beek on March 26, 2011 - 04:34
Here are 5 reasons why China is facing inflation. High inflation is a nightmare scenario for the Chinese government. It could result in social unrest.
To Prosper…What Asset Do You Want to Avoid Like Hell during High Inflation
Submitted by Van Beek on December 6, 2010 - 17:08
During higher inflation, cash is no longer king. In what will you invest?
Assume 5 years of 5% inflation and 4% interest. The $10,000 in your savings account has grown to $12,167. Nice! But there is a problem. With this $12,167 you can buy only as much as you could buy 5 years earlier with $9,414. You have not become $2,167 richer. You have become $586 poorer.
Inflation is like a tax. It takes away every year a part of your savings and wealth.
What to do with Bonds Bubble, Inflation or Deflation and No Clear Trends in the Stock Markets
Submitted by Van Beek on August 29, 2010 - 05:48What shall anybody who wants to invest his or her money now do when stock markets do not move in any specific direction, the recovery is uncertain and interest rates on savings accounts are still incredible low? I like to have a simple answer. The simple answer is not there yet, but here is some food for thought.
To try to find simple investing strategies that work when there are no clear trends in the stock markets, I am reading and looking what can be done with bonds.
At the same time, a disaster scenario would be where stocks do not move in any long term trend, savings accounts do not provide any substantial interest and inflation starts to soar, eating away all your savings.
