(04-15-2021, 04:50 PM)jagibelieve Wrote:

(02-22-2021, 07:21 AM)The Real Marty Wrote: The Fed is going to allow inflation to run hot.  All they care about is economic recovery and full employment.  They will not be able to raise interest rates, due to the size of the federal debt.   So, time to invest for inflation.  

GLD
SLV
RING
NEM
ABX:TSE

These are not short term plays.  These are for buy and hold investors who are willing to hold for several years at a minimum.

I'm starting to think that this post from February is spot on.  We are seeing it happen before our very eyes.

Housing market has gone stupid.
Lumber prices have gone stupid.

Shortages of things like guns, ammunition, swimming pools, RV's, furniture, etc. has gotten crazy.

Want to buy a new tractor?  Better get on the list now if you want it before 2022.

Prices for just about everything is going up, supply can't quite keep up with demand right now and many places can't get labor.  Meanwhile the government keeps pumping more money into the system in the form of "stimulus", "relief" or the new catch phrase "infrastructure".  At the same time they are flooding the voter base with new democrats coming across the southern border.

Take a look at the recent history of Zimbabwe or Venezuela to see where our country is rapidly heading.

You cannot repeal the laws of mathematics.   It is inevitable that if the federal debt gets big enough, the federal reserve will not be able to raise interest rates to combat inflation, because that would cause interest on the federal debt to become mathematically unsustainable.  So we'll be stuck with inflation.  

Investing for inflation will become profitable when everyone realizes that we are stuck with inflation.  You don't want to be late to the party, because by the time everyone realizes what is about to happen, all the profits will be baked into the prices of the assets that I listed.  You have to be first to make money.  

Hard assets like real estate or precious metals will be a great investment for inflation.  The stock market is generally a good investment during inflation, because inflation gives companies pricing power.  The worst investment for inflation is long term bonds.  

And when I talk about "investments," I am not talking about speculating- buying and selling.   I am talking about assets that are bought and not sold.   

Newmont Mining (NEM) is a large, stable, profitable company that mines precious metals and pays a dividend around 3.5%.  It's an excellent holding for a long term portfolio.

Disclaimer: I am often wrong.

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