of 0.25% supposes an interest rate of 1.25% compared to an annual inflation of 6.8%, who wants a government bond, gentlemen? they lose 5% a year nor the state wants to buy them xD
Honestly, the market has been so weird lately, I was also a little worried at some point but, after seeing what's happening in the US, I'm not worrying anymore haha.
From what I understand they compare the situation with the crisis of the 80s, the problem is that interest rates at that time were at 10% with a controlled inflation of 2%, it was normal for equities to fall and for people to invest In fixed income, equities at that time did not have as many rises as now and in the midst of the crisis, much was not expected, now the situation is different, inflation is higher, interest rates are much lower and the money supply is very much. Mayor
Yep. 100%. I'm not sure how they will manage 2022 but it's not promising. Especially with the current administration and their political parties. They spend more time fighting than actually solving real problems.
As long as equities can absorb most of the inflation, everything will be fine, they can't do anything unfortunately, just watch their currency devalue to a greater or lesser extent.
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