Fed rate increase = lower hifi prices?

Nazi Germany printed money to pay the war  reparations

The bill was not tied to gold British pounds,french francs or us dollars it was only in there own currency. So they printed money like crazy and paid with worthless colored paper. During corvid 19  the world Bank's almost all of them increased the money supply for the same basic excuse in every country. Even though debt is referenced back to other currencies they all did the same thing. The end result is not higher prices it is in fact lower value of the national currency. This was very obvious what was going to happen to the value of the dollar to anyone who has read rise and fall of the third Reich. Within the first two months of the pandemic I knew what the outcome as far as money value was going to be and brought hard assets real estate gold and silver. I didn't want any amount of cash on hand as I was sure this was on its way. I personally feel like we are in the equivalent to 1973 when OPEC was formed. We are at the beginning of hyper inflation. In 1973 a guy could buy a basic Chevy work truck for three thousand dollars in Canada by 1983 that same truck with a different front clip but the same four speed same 350 same frame same rearend was 12000 so in ten years the price of a pickup went up four times. Housing here went up five to six times here farmland went up seven times. Gold Price in 1972 was 65 dollars by 1982 it was 440 dollars all I say is hang on the ride is looking like it will be a wild one. 

All the best,
Nonoise

Simply put, everything in finance is supply and demand.  Then you add greed, natural and world events and that’s where things get screwy. Like @nonoise said, the stock market is still above where it was 6-7 months ago, so the sky isn’t falling. Can it get worse? Sure.  I bought my first house in the early 80’s and was thrilled to assume a loan for only 8.5%! The going rates for home mortgages was 12.5% for a 30 year fixed loan and up. Can you imagine  the screaming if 13% home loans came back?

@soix   Take a look at the very interesting post from retiredfarmer above. Unfortunately, I think he has some very good points.

@daveyf

@soix Take a look at the very interesting post from retiredfarmer above. Unfortunately, I think he has some very good points.

That’s kind of the point...everyone has good points...everyone’s perspective matters. A word to the wise though...going all in on a gut investment theory, especially one driven by emotion, is the stuff that dreams are made of if you happen to be a bookie or a professional investor. At the dawn of the pandemic, markets actually behaved logically and priced in a rapid slowdown in the economy and asset deflation...then the stimulus, then the change in human behavior, then inflation caused by predictable supply chain disruptions.

There seems to be a pervasive anger brewing among some that the apocalypse hasn’t happened as often as so many like to fear or preach (the choice of the word isn’t accidental). The FEAR of an apocalypse is the most effective way to predict human behaviour though. Interesting stuff to watch. I just try to live drama free and make decisions on that same basis. There’s always someone willing to buy beanie babies and tulip bulbs, which always leaves me scratching my head. Gold is my least favorite place to park investible resources. To each is own.