Government's Panicked Response to This Economic Crisis [View article]
User 55065 says: "I agree with most of what you say, except for the last sentence "only winning asset classes in this environment are going to be cash,". How can cash outperform anything in a high inflation period?..."
I think what Mr. Cooper is saying is that now (and for the short run) we are in an initial deflationary period and during this initial phase "cash is king". To use his analogy, we are just stretching the elastic band in the short run.
When the economy begins to recover, we will begin to see inflation again (the brick will start to rise) and then we need to shift away from cash to hard assets and selected equities.
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User 55065 says: "I agree with most of what you say, except for the last sentence "only winning asset classes in this environment are going to be cash,". How can cash outperform anything in a high inflation period?..."
Jan 07 10:01 am
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All Comments by Steve in Greensboro »Government's Panicked Response to This Economic Crisis [View article]
I think what Mr. Cooper is saying is that now (and for the short run) we are in an initial deflationary period and during this initial phase "cash is king". To use his analogy, we are just stretching the elastic band in the short run.
When the economy begins to recover, we will begin to see inflation again (the brick will start to rise) and then we need to shift away from cash to hard assets and selected equities.