The Stock Market, Investments, and Investing Thread
(06-06-2019, 08:38 PM)Hypno Wrote: Rental RE with a mortgage.  Real asset, repay the debt in inflated dollars

This is something I'm headed towards as part of my mid-term plan but hadn't considered the mortgage itself, it's an excellent point.

Part of the reason I'm concerned about positioning for this is because while most policy-making seems to be giving up on inflation as a concern (tariffs are inflationary, rate cuts are inflationary), fiscal policy is really only headed in one direction and inflation is in line with the goal of reducing imports and increasing exports. There's a good write-up in Bloomberg about this this morning. (Not intended as partisan political content, but rather business and financial content.)

Quote:The Commerce Department proposal risks adding uncertainty to an already volatile U.S. trade policy, with additional repercussions for the dollar. Historically, presidents and their administrations have promoted the mantra of a strong dollar being in the nation’s interest in part to bolster foreign demand for U.S. debt. Yet pressuring trade partners who are seen as devaluing their currencies could have the effect of weakening the greenback.

“The U.S. is implicitly moving towards a weak dollar policy with its unwillingness to condone other currencies’ weakness against the dollar,’’ said Prasad, author of “The Dollar Trap.”

In a report to clients on Thursday, Morgan Stanley analysts said this week’s meeting in Japan of Group of 20 finance chiefs “could see the dollar coming under early selling pressure.”

Trump has an unlikely ally in suggesting an aggressive currency policy to achieve economic goals: Democratic presidential candidate Elizabeth Warren. In a plan released earlier this week, she called for “actively managing’’ the dollar to bolster U.S. jobs and growth.

Warren, a Massachusetts senator, blames foreign investors and central banks for having “driven up the value of our currency for their own benefit".

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RE: The Stock Market, Investments, and Investing Thread - by Jetset - 06-07-2019, 01:14 PM

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