The big boys have been making some very strange investments lately. Things out of the ordinary. Bill Gates is now the largest owner of farm land in the US. Warren Buffet who has traditionally avoided gold and silver just bought over 500 million dollars in gold. One of his fathers biggest lessons to him growing up in the depression was have Tangible assets. Elon musk invested heavily in Bitcoin which goes up when the market goes down. Even at 5 year lows hedge funds are shorting stocks. I know we all expect turblance in the market coming out of this pandemic. Did we really see the bottom in March though? With the m1 money supply skyrocketing and no end in sight. It seems like the plan is print our way out. With price gouging laws and national pandemic declaration, it would be illegal to adjust pricing on most goods until after the pandemic is lifted. Like gasoline and water during a hurricane. Stores can't adjust the price even if the demand is outpacing supply. Things we have seen increasing in price are things like used cars (up 10%,) houses (up 8.8%,) which wouldn't fall under that pandemic protection.
Pandemic protection aside. The money supply is going crazy. Inflation seems to be massive in some sectors and non exsistant in others. But it's mostly in open parts of the economy the inflation is happening. More money chasing less goods. The market is still volatile and personally I don't think we've seen the worst of the lows yet. I think once the pandemic is over and the money printing slows (2 years is my guess) we'll see massive spikes in the cost of goods that will rock the middel class to the point where they are subsistence living on 60k. $15 minimum wage will be worth less or the same as the current $7.25. This means almost no money spent on luxuries and companies failing. They can't just double everyone's salary while also loosing a giant portion of sales.
Maybe I'm overthinking it? It just seems like the upper crust of society who generally have friends in the know about big events, like congress selling off stocks after the corona pandemic meeting and right before announcing lockdowns (insider trading.) With billionaires buying recession proof assets and professional traders shorting the market at higher then normal rates, It seems like a giant dip + inflation that will be felt by all walks of life is coming in the future.
Edit: I'm riding the bubble to the top to make some money in the mean time. Still I don't see it lasting over 2 years. I think the bottom on this one will be worse then 08, and that rivalled the depression. Massive Inflation (not hyper inflation) plus a crash in the market would absolutely decimate the economy. Both would be damaging alone but combined I can see real potential for something worse then the depression.
What are you're thoughts on these odd asset purchases by the wealthy? What are your thoughts on the money supply and inflation? What are your thoughts on a second big crash like March 2020? Criticism is welcomed. But don't forget. Everyone who said the sky was falling in 08 was laughed at by their colleagues on wall st. They were the only ones who made money in the end.
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