Inflation: there is nowhere to hide An interesting situation | Retire at 40

Inflation: there is nowhere to hide

An interesting situation looms. The head of the US FRS calmly says that inflation has accelerated noticeably and will remain high for some time, but the FRS can afford to continue to keep the rate at zero. Why raise it? When the dollar is the main reserve currency in the world and American inflation is spread evenly around the world.

So we live it turns out - in high inflation, and how long it will last is generally unclear. Anyone who is dissatisfied can leave the dollar for any other currency, but no one is forcing them to buy it with a stick. There are plenty of options: euros, pounds, yen, yuan) but there is no global flow of money from the dollar, other currencies have their own problems. And nothing can be done about it, this is how the global financial system works.

In addition, everything is getting more expensive - oil and gas, fertilizers, wood, metals, cars, real estate (developers / realtors are swimming in money).

Fact: there is too much money, in all areas, hence money depreciates. This seems to be a simple logic, everyone understands it, but they act in different ways. In this regard, I do not understand at all the position of people who stubbornly refuse to invest.

Relying even on my own life experience, I clearly understand that during high inflation it is most rational to keep most of the money in assets (in my case, in the stock market). So, at least statistically, I have a high probability of protecting myself from inflationary risks and gaining profit (if I'm lucky).

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