Am I the only one feeling that whatever I do, I will not be able to hedge the side effects of global inflation on my purchasing power? Actually, the existing investment options failed hard against the inflation.
The Precious metals could not keep up with the strength of US Dollar and the monetary policies of FED. Basically, holding their money in the form of fiat currency seems reasonable for millions of people while they are going to generate negative value because of this inflation rate.
As Blackrock revealed, these yields do not generate positive return for people. There is another tricky point to be considered. We are considering what's being shared with people.
I cannot forget the chart on Aei.org. According to it, real inflation rate is above 75½ for 2022. That's crazy!
IMHO, there are thousands of things to be discussed on this picture but I want to highlight a point that I believe we totally miss it.
The blue ones, below 0%
Have you noticed the thing that is in common between these elements?
Mass-production.
As the price of mass-production stuff is similar to what we see on this visual, the items on the blue side may make some spikes and turn back to stable portfolio because they are non-stop produced for people to make them purchase a new and better one.
People keep buying new phones, new televisions, cars and clots and the market, they may not realize the slight changes in the items on the red lines.
Without noticing, we got some serious issues that are directly related to your basic needs in your life. Essentially, Food, Health Care and Housing.
What happens when humanbeings cannot thoroughly meet the Pysiological and Love/Belonging issues in Maslow's Hierarchy?
Basically, their attitudes and ideas will be surrounded by the financial problems they experience or these people will be able to handle the issues in their lives.
Is it Possible to hedge the real Inflation?
To be honest, I could not find a sustainable way to escape from this "less trustworthy" inflation numbers around the world. The US Dollar has gained a lot value and it may not be the best time to invest in USD when there is 8% inflation.
Gold has not showed up to protect people from lowering purchasing power. I'm sure it will be used as a vehicle to answer the requirements of being the most popular element in the world.
Crypto and/or De-Fi yields nice return compared to the other counterparties but the fundamental problem arose from the fact that these investment options did not attract the attention.
In the end, I'm totally lost 😶
Posted Using LeoFinance Beta
