If inflation starts to ramp up why stay cash?

[noob_trad3r]

Why put money in 10 year notes that earn 2.2% when and my money lose value VS buying lets say SPY that warns a yield of 2.1%

At least with inflation assets appreciate and cash loses value.

 

[kashirin]

the only problem SPY down since the start of the year by 4%

and bonds up 15%.

So if you follow you logic you lost at least 20% in 6 months

 

[morganist]

Quote from noob_trad3r:

Why put money in 10 year notes that earn 2.2% when and my money lose value VS buying lets say SPY that warns a yield of 2.1%

At least with inflation assets appreciate and cash loses value.

Isn't this why everyone is buying gold?

 

[noob_trad3r]

Quote from kashirin:

the only problem SPY down since the start of the year by 4%

and bonds up 15%.

So if you follow you logic you lost at least 20% in 6 months

I am not thinking 6 months I am thinking 25 years.

 

[noob_trad3r]

Quote from morganist:

Isn't this why everyone is buying gold?

because when gold was expensive in the late 70s early 80s they did real bad compared to someone who was buying the S&P 500 basket it seems.

why do I want to repeat history?

 

[Tsing Tao]

Quote from noob_trad3r:

because when gold was expensive in the late 70s early 80s they did real bad compared to someone who was buying the S&P 500 basket it seems.

why do I want to repeat history?

Yeah, well historically, the S+P at this level offers little return over the next year or two.

 

[morganist]

Quote from noob_trad3r:

because when gold was expensive in the late 70s early 80s they did real bad compared to someone who was buying the S&P 500 basket it seems.

why do I want to repeat history?

The other economic factors are not the same. I would look at the surrounding factors that support the S&P and question whether they can be sustained. Gold demand is high not from solely American demand but global demand. It will have growth from elsewhere.