Isn't truly the issue with inflation that it hit stocks in the short term but then helps in the longer term?
So, yes equities are the best way to deal with inflation but the change in inflation may cause a decent correction. We are probably due for a correction based on PEs getting on the high side.
Now - I don't think high tariffs and deportation en masse can really happen because the combined would be too big of a shock to the system. The shock and awe strategy is just a strategy. There is no tolerance for significant inflation causing policies.
That being said, I did make a shift in AA and used age and CAPE as my justification. I went from 71.5% to 64% equity which I think was a modest move. I am also resigning this week - probably a partial retirement. The large swing by OP is hard to justify.
There are an equal number of factors driving the market to greater heights.
So, yes equities are the best way to deal with inflation but the change in inflation may cause a decent correction. We are probably due for a correction based on PEs getting on the high side.
Now - I don't think high tariffs and deportation en masse can really happen because the combined would be too big of a shock to the system. The shock and awe strategy is just a strategy. There is no tolerance for significant inflation causing policies.
That being said, I did make a shift in AA and used age and CAPE as my justification. I went from 71.5% to 64% equity which I think was a modest move. I am also resigning this week - probably a partial retirement. The large swing by OP is hard to justify.
There are an equal number of factors driving the market to greater heights.
Statistics: Posted by David_Cary — Sun Dec 01, 2024 6:03 am — Replies 75 — Views 3661