Prepare Yourself for the Inflation Invasion [View article]
> that money is going to find a home. This phenomenon will eventually devalue the dollar and push price inflation much higher, which is also referred to as reflation
The money already found home - in financial assets such as equity and bonds. Since banks don't want to lend the money ( because they need it to cover future losses and the lending standards are much higher now) they still need to make profits and they make them through trading financial assets with the money from the FED. That is why we had such a huge run up in stocks . It can continue as long as FED keeps printing money ( through buying treasuries and other securities). Who cares about fundamental analysis. You just need to know what FED is going to do. Of course, investment banks have a much better idea than an average investor. So, again, it is investment banks who win at our expense.
Prepare Yourself for the Inflation Invasion [View article]
The money already found home - in financial assets such as equity and bonds. Since banks don't want to lend the money ( because they need it to cover future losses and the lending standards are much higher now) they still need to make profits and they make them through trading financial assets with the money from the FED. That is why we had such a huge run up in stocks . It can continue as long as FED keeps printing money ( through buying treasuries and other securities).
Who cares about fundamental analysis. You just need to know what FED is going to do. Of course, investment banks have a much better idea than an average investor. So, again, it is investment banks who win at our expense.