The great confiscation

 

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We are in a scenario where all investment asset classes, no exceptions, are providing you a lower purchasing power the next period (next day, week, month, you name it):

Tech stocks: down by a lot

Broad stock market: down by a lot

Corporate Bonds: down

Treasury Bonds/bills: down

Gold: flat/down

Cash in "strong" currency: down (8%+ inflation in most developed countries)

Cash in emerging market currency: down (10%+ inflation for decades already)

Bitcoin: down by a lot x2

The only thing that has been able to increase in value: house prices/land. No real estate ETF, residential housing ETF, house ETF, whatever. Just direct ownership of houses and land. Literally nothing else. With rate hikes however, getting a mortgage is more and more difficult every month. In your opinion, when/how does this end? It cannot be (I hope) that all non-house owners keep loosing wealth forever. In past crises, at least one asset (be it gold, cash, or treasuries) had a negative correlation with the stock market and economic activity, so your wealth could be preserved. Now, none of those works: we have weak/declining economic activity and inflation, and the classic (and "emerging") store of values simply are not working (till now at least).

submitted by /u/cidadefalcao
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247 Bitcoin

Bitcoin & Crypto & NFT News

247 Bitcoin -1 Bitcoins -247 BTC - 1 Crypto - Kryptous

1 News - 247 News - 1 Search - 1 eBooks

 

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