Monday, October 26, 2009

I'm pretty sure I've heard this story

Gold, stocks, etc. have been rising recently.  Isn't most of this simply a function of a declining dollar?  In other words, inflation?  An asset bubble?  Much of the government's stimulus efforts seem to have been translated into increased holdings of financial assets rather than increased spending.  Which isn't great for TIPS (CPI flat, asset prices way up).

Oh well.

1 comment:

Paul said...

And so, months later (and late), I realize that being a borrower is probably the place to be. Asset prices look too high but that may simply be a function of not realizing that it is inflation rather than overpricing.