vague ideas ? 
this is what I am trying to say, If inflation is more than interest rate then there are no gains but negative returns
1 Like
Interest rates and inflation are both transient /cyclical in nature. Also, what world currently facing is fuel that indirectly leads to food inflation across the world. Just calculate how much is your monthly expense in food or fuel .For some it just mere 1% for some its 50% , so again expenses are very personal thing and also inflation.same lies with investments. A person with not much major expense in items which are inflationary doesn’t get any impact at all.
Also , in the video ,Buffet mentioned about long term bonds which are always not priced as per the near future cycle.He himeself was sitting on 150 billion dollars bonds/cash for almost 2 years.
So, nothing is linear what might be low return now will be high return in few months and debt/money market is biggest market and money gets tickeled from money/interst rate market to any other market not the other way round. Thats how the system works .
@KANAGU
An Interesting debate on where to invest - Equity , debt and gold…
Participants: Ajay Srivastava, Feroze Azeez and Sugandha Sachdeva
Umm, one more plus point is, that atleast the money is moving right. If inflation would have eaten 8% now It only ate 4% or 5%
Im only talking with context of diversifying investment.
2 Likes