Saturday, October 19, 2013
Opposite of Dancing
Watching stocks rise on US markets has not been a cause of joy for discerning investors, but has elicited concern that those gains are phony, because they are measured in the US dollar which is increasingly worth less. Of course, shareholders want to see the value of their investments rise, but those in the know are just counting the days until inflation becomes hyperinflation. No American investor wants to be a Zimbabwe billionaire or a Weimar Warren Buffett. You may rejoice to see your 401k's value double, but when the price of all your necessities triples in the same period, you must recognize that you are actually losing ground.
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