RickEngland
Elite
- Joined
- Nov 14, 2011
- Posts
- 4,600
- Location
- Essex England UK
- Society
- Jurai Blood
- Avatar Name
- Rickard Rick England
Liquidity isn't invested in precious metals because of a fear of hyperinflation, it's generally done because the fear of falling asset values on stocks, even bonds.
Generally investors would switch to bonds (mainly gilts, gov bonds) in times of economic trouble. But there's so much liquidity out there right now, that investors are buying negative interest rate gilts. That is; they're paying governments to take their cash....crazy right.
So this is part reason for massive fast recovery on stock markets, as there's so much liquidity. Moving back into shares, as economic risk reduces.
There might be a lot of struggling people, but just imagine how much spare cash the middle classes have, still being paid to work from home, but no where to spend it for 3 months. Not even any commuting costs.
People are pumping billions into funds managers right now, or doing it themselves. With nations falling over themselves to print cash to support economic recovery, pushing up asset values even more (lower risk).
I mentioned a month or so ago, you could make an ATH x100 on stocks with relative ease, for those that didn't follow a total doom scenario.
What will be interesting is if stocks surpass pre covid highs, not because companies are worth that value, but because the perception of value and demand pushes it to those values. Where else is the money going to go?
For those that think I talk poo, I've put everything I have on the market. Once in a lifetime opportunity. Doing very well, but not got any liquid cash right now. Might be forced to take some profit soon, to pay some bills haha.
It's not hard to best any game ATH, in the real world.
From hyperinflation concern, wont happen. That's another long read, although you might be bored already.
Rick.
Generally investors would switch to bonds (mainly gilts, gov bonds) in times of economic trouble. But there's so much liquidity out there right now, that investors are buying negative interest rate gilts. That is; they're paying governments to take their cash....crazy right.
So this is part reason for massive fast recovery on stock markets, as there's so much liquidity. Moving back into shares, as economic risk reduces.
There might be a lot of struggling people, but just imagine how much spare cash the middle classes have, still being paid to work from home, but no where to spend it for 3 months. Not even any commuting costs.
People are pumping billions into funds managers right now, or doing it themselves. With nations falling over themselves to print cash to support economic recovery, pushing up asset values even more (lower risk).
I mentioned a month or so ago, you could make an ATH x100 on stocks with relative ease, for those that didn't follow a total doom scenario.
What will be interesting is if stocks surpass pre covid highs, not because companies are worth that value, but because the perception of value and demand pushes it to those values. Where else is the money going to go?
For those that think I talk poo, I've put everything I have on the market. Once in a lifetime opportunity. Doing very well, but not got any liquid cash right now. Might be forced to take some profit soon, to pay some bills haha.
It's not hard to best any game ATH, in the real world.
From hyperinflation concern, wont happen. That's another long read, although you might be bored already.
Rick.