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Sean HymanSean Hyman
Keymaster
Post count: 3401

The Fed has more to do with inflation than any president of either party. AOC wants Bernie as president, which isn’t going to happen (thankfully).

The Fed has already printed enough, even now to potentially stoke inflation. If we get inflation….so what? Our assets just go up more easily because of how we’re positioned. Now…if I were ONLY a saver and NOT an investor…then I’d be very concerned.

But inflation won’t be in the hand of one party or the other. It’s mainly in the power of the Fed and lately the Fed partnering with the Treasury.

You shouldn’t set up a stock account in euros or pounds. 1) Since the currency market is the absolute hardest to time, I’d bet you can’t time it correctly (nor can most, except for the most experienced currency traders). 2) Conversion fees from euros/pounds to dollars and back are HUGE. So your spreads on each conversion would set you back a ton.

You’ll notice that Warren Buffett has $147 billion in cash right now and he’s not trying to time the currency market or denominate his accounts in foreign currencies. We already benefit from foreign currencies via FXB. And many of our multi-national companies have a foreign currency component to them since they earn a lot of earnings in foreign currencies like euros and pounds and then convert them back to their dollar-denominated books. So you’re heading in the wrong direction.

Plus, SLV will far outperform any currency play you could go into. It works as an anti-dollar tool too. So, in LI, you shouldn’t give one moment’s thought to inflation. If anything, inflation helps us. If you were solely a consumer or solely a saver but NOT an investor…then you should be worried.

So there are many people that are in that camp that should be worried that don’t have sense enough to know it (due to inexperience with currencies)…but we’re not in that camp.