Topic: Is this a clear sign of high inflation? - page 2. (Read 404 times)

The best weapon against inflation is buying solid fiat, or gold, or the best BTC, if it is BTC better because in a fully inflationary economy, it does not matter that the BTC falls in price, in the same way it will continue to be worth a lot with respect to the internal economy that the country owns.
Another way to protect against inflation is by buying material things that are later sought by people and at that time it is possible to sell more expensively, and resort to looking for extra income at all costs, starting a simple business that can give money is another way to attack the problem.

Also currency strength also determines how much inflation this stocks incures. International interest doesn't have much effect when compared to currency printing and currency value. The strength of a currency matters in relation to the price of financial assets and with the recent economic crises in many nations most financial assets will see another ATH making the inflation more intense

This is why the rich have so little cash around, they understand the system is rigged so it would be silly for them to keep a huge amount of cash around when inflation is going to destroy the purchasing power of that money, so they use all the money they have available to invest in whatever they want while just maintaining the minimum amount of cash necessary to keep their lives going, so in the end instead of being negatively affected by inflation they end up benefiting from it.

Actually there are different metrics to measure inflation and it is surrounding us in every aspect of our life and sometimes we are just ignorant enough not to notice it.What you said is right that most of the time we are measuring inflation with rise in food items,gas prices and all that basic stuff but are not worrying about the big problems or that doesn't comes under our perspective easily.

The root cause of this inflation is dollar and fiat devaluing over time as most or say the trade is carried out in it and suppose you even earn $100 as profits from the stock and you keep that in your pocket will it still be worth $100 a year later also even though it is very near? The simple answer is NO because government has found a new game that is who will print more notes and sink their economic boats first.

Have you noticed about something called shrink inflation ever? It is paying same price for a product over some years but the company plays smart by reducing the quantity and packaging techniques we didn't notice them most of time.There are lot of things which we can take as inflation example like you have taken of stocks and S&P 500 but majority is busy at this time watching government decide their fate which is not gonna end up smoothly.

This is where btc enter the market and those who invest are the wise one's.The inflation chain is going to be more strong and you need something more strong to cut it and that's deflationary BTC

Inflation seems to be felt by many countries, especially during the pandemic which is getting worse and this is felt by the lower middle class whose impact is very significant because they are no longer maintaining values but looking for values to survive while the government does not seem to want to be burdened by them and hands off

Inflation is a pretty bad thing, you’re holding huge amount of money, but that money is totally useless, because things are costly in the market and before you know what’s happening you’re already done spending all the money on just a few things.

The covid-19 situation has really turned a lot of economies around the world upside down and causing them all to struggle. It has been the same way in most countries, and it’s worst in a case whereby the government is filled with leaders that doesn’t care to carry out their responsibilities to the citizens. Inflation keeps going up and the cost of things are high, and people are now looking for ways to save their value.

Yes, this is a sign of high inflation and perhaps this is just the beginning. The stock market, like the crypto market, has been filled with money printed in the United States for the past two years, which has already broken all records. All of this is implicitly leading not just to big inflation, but to hyper inflation, and now we are all witnessing this. Of course, at some point, this will increase the price of both company shares and cryptocurrencies, but in the end, all this will collapse, as has happened more than once. So a lot of interesting things await us in front of us, the main thing is to have time to fix the profit in time and probably to buy this profit.

That leverage is the main problem if you ask me. Even if there is a finite amount of money in the market right now, they could use it for something, do it a thousand times and repackage that thousand times into another time, then do it a thousand repackaging and call it another one and just keep doing that forever until there is no more repackage going around. So, there is a finite amount of money but somehow infinite amount of money spent, how? Simply because hedge funds and banks did it that way.

Technically speaking there are more debts to be paid then the cash available. Sure there are "networths" which are higher than the debt totals in the world, but the cash in banks, the liquidity basically is a lot less than the debt we have globally. Which means even if everyone got their money together and wanted to pay off all the debt, we couldn't. How? If we can fix that, we can fix inflaiton problem.

The trend of the inflation rate is already clear even without the chart, that's clear to see the fiat currency and the money we get after doing hard work is becoming worthless and it doesn't matter where you leave, even of countries, you will see the inflation rate buy recently in America everything is becoming worst than ever and the inflation rate is rising more comparing to the last years however the covid and economic crisis can be a reason for this situation.

Simplicity says inflation is the increase in the monetary base.    We then try to map out how that money filters and recirculates with additional Fractional-reserve banking leverage in the economy, this is all fuzzy data open to interpretation and opinion hence why politics has eclipsed economics.    Stick to basics and we're into double digits of inflation in some years, far from impossible its just a repeat of history.  
     Humans are predictable in mistakes we just want to believe modern advancements nullified that but human nature hasn't changed massively over hundreds of years from my view even while civilizations develop, the base ideas to economics arent altered.    Inflation is the monetary base expansion and the rest of various theories is an attempt to justify this debasement by the growth occurring, some link inflation as growth almost the opposite of the truth imo.   Find a constant and questions are more easily answered, the economy is the people and growth is the work of those people not money expansion/inflation.

Awareness to inflation is rising could be another clear sign that it’s starting to be more noticeable than normal. There’s data showing that prices of second hand cars are surging in their ATH, which is something never observed before.



I believe their next search phrase will be “inflation hedge”.

One key aspect to understanding markets and the economy is breaking down traders of assets by demographic. And recognizing how much of an influence each demographic can exert in terms of their liquidity.

We can see markets rise and fall. But not many know the liquidity of which demographic is responsible for price trends. Fewer still can identify motives which lie behind trades. This was proven during gamestop and dogecoin pumps. Where the majority struggled and failed to identify where the likely liquidity behind said pumps came from.

There are historical precedents to draw upon from past eras of inflation. Similar trends were observed post 2008 economic crisis. As well as the initial phase of COVID. Eras where stock market trends failed to make much sense to investors who have followed market trends for many years.

From My own point of view of inflation, it is sometimes a correction and real inflation.

Like When I saw the bitcoin value is 51k I stop and thought there I will sell my bitcoin

Sadly it turned out a sad story it was too early to pull it out.

The best way here is really study the movements to help you with trading or stock trading

to simply put an answer to your question sometimes it is not a clear sign.

This is both good but also very bad at the same time. It is bad because it shows that inflation has cost the nation a lot and we are going to pay a lot more for everything we buy, even though we look like we got "richer" in reality our money stayed the same so there is really nothing that helps us in this regard.

However, it is good because we may not have any money to invest at all and it would mean that we wouldn't be able to invest and we would be missing out on this. Imagine yourself being one of the people who are out of work because of the nationwide strikes and now you need to spend the money you have in your bank account, or maybe not even have anything in your bank account, that is the worst situation you could be in at that moment. This is why even though inflation is bad, at least having enough money to take advantage of this increase in stocks is good for all of us who invested into it.

https://postimg.cc/c6rFTWX0

Many countries are still struggling to reduce inflation in their country since we escape from pandemic few years ago. Now that the price of a commodities is about to go up because the government refuse to print more money to prevent inflation from the country. Many investors are finding it difficult to make a good profit from their investment because of the way the price of market is developing some negative challenges in the market.
Many companies are preparing to close down production unit first week of December which will cause so much inflation in the country. Many products price will definitely increase to cause hardship in the country like the one citizens experienced during the covid-19, that takes place good one year and some months in the country.

The stock markets in each country are often effected by both domestic markets and international ones. There's lots of international interest in growth stocks in places like the US, and interest in dividend stocks internationally in places like the UK and Germany.

However, things like REITs will obviously have an impact on inflation as they can send up the cost of living.

One of the first money things I learnt about in school actually. Now I'm just putting it as I remember, and how the basics went, but we had in our country a period where the Japanese occupied and printed their own local money. But they kept printing more and more of it to give out to locals and try to quickly establish a new cash economy (they had to displace at least 2 systems that pre-existed).

Goods soared in price, and the scenes we're seeing now in some parts of Africa, the Middle East, and South America, where people are buying food with wheelbarrows of money, that's what my grandparents said happen.

And those businesses and people who bet on the Japanese staying for good, well, they lost a lot, while actually holding a lot of cash, when hyperinflation hit the roof. Those who preferred to hang on to old currency, or gold, waited out the occupation and made it out alive. It does make me wonder now what happened to stocks

Anyway, they were so numerous you can still buy these notes in mint condition in tourist shops and flea markets. We call them banana money (as they printed bananas on the notes haha). They were used in basic school to teach us about inflation.

That said, there are countries still betting on the dollar... and with euroskeptics getting stronger and the global south scattering their fortunes and still opting for dollarisation, I doubt anything catastrophic happens to the dollar in our lifetimes.

From what I've read, it seems that it's not so simple. For example, an excerpt from here:
So it's not only about the fact of inflation but also about the circumstances of it. I've seen a similar thought in other articles as well, and sometimes stock can hold up against inflation, as long as the overall economic situation is good.
And while some rise might be attributed to growing inflation, it might also just be that there's more demand for these stocks and people are more willing to buy them, so the price is going up. Also, I don't realize why we need signs of inflation by analyzing the stock prices if the inflation rate is not something kept secret, right?
According to Guardian,
So it is true that the inflation is on the rise, and it is true that the stock price is up, but it doesn't mean the two are causally related and, if so, to what extent.

The probability of hyperinflation is very low, yes, but it’s always better to have a back up/fall back if the Fed and the government loses its control over economic/financial system because of all their BRRR-money-printing.