So you sit on cash?
Announcement
Collapse
No announcement yet.
Do you guys think another market crash is coming?
Collapse
X
-
Originally posted by txpitdog View PostHe’s betting that the decrease in the value of the dollar is less than the decrease/contraction in the valuation of the companies he would invest in. If the dollar loses 5% but funds lose 10%, he wins by 5% before any kind of recovery or upswing even begins.
Make sense?
Company sells 1 million widgets for $10 each with profit of 10% or 1 mil in profit.
After inflation company sells the same 1 million widgets for same 10% profit margin but sells them for $20 each.. Now they're netting 2 million.
Stock should be worth 2x what it was before inflation scare.
Comment
Comment