We got this note the other day, “You say in part, ‘In markets today, to get along, you have to go long. And if you don’t, well you’re out of luck.’ Are you no longer worried about a melt down in the short term? How long is long? One year or two?
“Your past words of imminent doom had me very worried with its effect on my investment actions, (or inaction ) are you now changing your timeline? I am a daily reader of your investment letter and look forward to your response.”
We answer that a melt-down must be preceded by a melt-up. Or in economic terms, a deflationary bust characterised by over production and capacity surpluses must be preceded by an inflationary boom.
We are in the boom phase. And like it or not, related to real value or not, prices are going to rise as global money and credit creation booms. If you’re in the markets, you’ve got to make a choice with your money. So we’ll be choosing assets with tangible value that are in economic demand as well.
Markets and Money
Are we in the middle of an inflationary boom? Leave a comment below.