(02-20-2021, 11:04 AM)The Real Marty Wrote:

(02-19-2021, 05:48 PM)jagibelieve Wrote: News flash for you... the President no matter who it is has no control over interest rates.

News flash 2.0 for you... interest rates are already going up.

Expect interest rates to rise along with the prices of a lot of things to go up.  Inflation is settling in right now.  Pumping trillions of "printed money" (stimulus) into the economy is making things worse.  Add to that the forced rise in petroleum due to domestic production down.  The bubble is going to pop soon.

But I wonder, how much can interest rates go up without causing an immense problem paying the interest on the federal debt?  I know a lot of federal debt is long term, but it is being rolled over all the time, and higher interest rates make the deficits worse by increasing the interest on the debt.  In addition, higher interest rates slow the economy, thereby reducing tax receipts.  

My theory is, the powers that be will allow inflation to reduce the value of the debt in real terms.  The hidden tax of inflation will be used against the debt on purpose.  They will keep interest rates down by monetizing the debt, and that is inflationary.  

So my thinking is, the powers that be will realize that inflation might be much more palatable than raising interest rates.  

Gold, real estate, and stocks are where you will want to be.

Normally, I would issue a disclaimer at this point, but in the spirit of this message board, I am going to act like I have total confidence in my prediction.  

You make a very good point, especially with the way that the current administration wants to spend.

I'm currently around 85% in on stocks and real estate with around 15% in cash.  I took profits on my largest position (tech sector) and entered new positions in energy and financials.  Small caps have also been doing very well for me.

I'm not a trader I'm an investor.  I don't move around too much and tend to hold my positions for a good period of time.  I did reach a milestone that I am happy about.  After working on my taxes it was revealed to me that I actually made more investing than I did from working.  Granted 2020 is certainly not a "normal" year for the stock market, but I did make some good decisions and took advantage of the current V shaped recovery.

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