Spencer Jakab
speaker
981 appearances
14 recordings
1 series
first heard Jul 2017
last heard Jun 2021
Spencer Jakab’s voice in public audio — every appearance, attributed to the second.
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Appearances
You're getting 0.6% roughly.
The rate of inflation is about a percentage point higher than that.
So even before you pay taxes, even before anything, you're losing money on those ultra-safe investments.
If you were to have, from that low starting point, a substantial uptick in inflation, say between 3% and 5%, I'm not talking about hyperinflation,
then any bond fund that you own would immediately lose value, lose a substantial part of its value.
Even if you have tips, which are treasury inflation protected securities, that's something we didn't have in the 70s to protect our portfolios.
What about overseas bond investments?
That might be one of the few places to hide.
I mean, basically, if this were to be a U.S.
phenomenon, if because of all the stimulus here,
we were to have high U.S.
dollar inflation, then you would probably see some weakening in the dollar if the Federal Reserve let things run hot, if they kind of sat back for a while.
And so some people think that the Chinese yuan would appreciate relative to the dollar.
Which would be interesting because you also can get some yield in Chinese government debt that you don't get in the U.S.
It's about 2.4 percentage points higher in terms of yield.
So you're already getting some income from them that you don't get here anymore.
Plus, you would make some money on the currency in theory if the Fed were to sort of sit back and let things run hot.
Yeah.
I mean, stocks are a big part of most portfolios.
The conventional wisdom is that stocks would do horribly if you were to have an uptick in inflation.
Showing 81–100 of 981 · page 5 of 50
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