Trading during hyperinflation/hyperdebasement

[Newc2]

What else could you be doing with the money to earn a higher return? Not much.

If your trading generates enough net income to live on plus grow your capital base by at least 5-10% annually, then you are as set as anyone can be in such a risky, highly uncertain profession with utterly non-transferable skills.

If it doesn't... well, you're eating your seed corn and will eventually starve.

Bitcoin has given an average of 200% pa

Besides that I can’t think of much else.

Of course it has risks attached. But then what doesn’t?

 

[Newc2]

Big difference is that dollar enjoys reserve currency status. How long it will matter, no one knows of course

I think the Chinese and Russians will soon stop accepting USD. Then it will be over

 

[TimtheEnchanter]

I think the Chinese and Russians will soon stop accepting USD. Then it will be over

They cannot just stop accepting there is a currency market and they can exchange it for whatever they want to. We can do the same for their currency btw. The US is still the biggest consumer market for the Chinese and the Russians can fuck themselves with their Italy-sized economy.

 

[maxinger]

I trade. Trading feels great. Say a realistic 20-30% a year on a decent bank roll.

Enjoy life (when not glued to screens).

But is it all an illusion? Are we really trading in quicksand?

As we know, inflation is much higher than we’re always led to believe. Especially on the things that matter.

Then there is the higher (and non-deferred) taxes from active trading.

Maybe that 20-30% return is a loss in real terms.

May be this is why there aren’t many famous wealthy traders

Thoughts?

Traders generally don't worry about hyperinflation or hypoinflation.

Let the nontraders worry about it.

 

[RedDuke]

I think the Chinese and Russians will soon stop accepting USD. Then it will be over

good luck to them then. It will be over only from within work. Which is rapidly under way by the Fed of course.

 

[murray t turtle]

I trade. Trading feels great. Say a realistic 20-30% a year on a decent bank roll.

As we know, inflation is much higher than we’re always led to believe. Especially on the things that matter.

Maybe that 20-30% return is a loss in real terms.
May be this is why there aren’t many famous wealthy traders

Thoughts?

%%
Sure new cars have gone up, but a depreciating asset like that has always gone up list price.
Sounds about right, IF you are thinking about paying taxes, federal taxes on 30% long term /maybe real dissapointed .................................................. So to those that think a new auto matters/may get worse. A CPA helps a lot even if one does not use one every year.
2% inflation sounds about right, but that is a 20% over 10 years.
Adding to the complexity i lost money on a metal trade, not the huge loss lie any takes on a new car/LOL But many metals, guns, silver, copper coins do not lose much /they tend to gain.
Adding to complexity / plenty pay up on certain kinds of fed notes ,copper coins, cash copper does not inflate much but, supply demand+ collectors up trend it super.
NOT a prediction.

 

[johnnyrock]

Just buy a bag of silver coins to have some money for toilet paper and invest the rest in gold, ammo, canned goods, weapons, tampons, cigs, medicine, etc.

Toilet paper and butt wipes too. Those beans go right through a fella.

 

[SunTrader]

Hey shares of Toyota topped 10,000 yen (or the price of a bowl of noodles) for the first time today so that's sumtin.

 

[SunTrader]

Inflation or Deflation?

"Inflation or deflation? Tell me if you can. Will we become Zimbabwe? Or will we be Japan?"

 

[Apux]

If you really want an accurate measure of inflation track real estate ‘values’. That has the most direct correlation. I think they have topped because of affordability and interest rates are proving/playing a role. One poster said $5 for hot Cheetos that used to cost $0.89. In the real world fuck hot Cheetos. Who needs them? The reality is people will get by with less consumption and prices will have to settle down. We had to absorb the trillions in thin air created fiat. That has been done. Look how much went into crypto and US equities. Hell even Chinese equities on an adjusted basis are holding levels that would only be possible on ‘new’ money. Was there hyper inflation? Yes. Most of it is behind us in the short run. #LetsGoBrandon.