Some people are thinking that the financial markets is going into massive inflation. And then there's Cathie Wood who thinks it will go into deflation. I don't need to explain the inflation arguments since they are well known (money printing). Here's the deflation arguments https://www.youtube.com/watch?v=KzmZd1RiO6g I don't know who is right and who is wrong, so I would like to see. I have seen both sides of the argument and both make sense. I'm putting this in writing so next time I can refer back and see who has gotten it right. And also see what I can learn from this experience on decision making.
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I will check this but have to say that after dealing with deflation it was terrible. But deflation does not come alone. There are major economic events that create deflationary terms. Deflation is usually the outcome of a major recession and follows it until GDP manages to restabilize. A recession causes de-investment, high unemployment, businesses shutting down, and together with part of the population moving their operations abroad. Liquidity vanishes, money is running out, and it all gets into a vicious circle that may require many years or even decades to find a bottom. All these together push consumer prices down, creating the deflation event, since the population is in no condition to keep spending at the same rate and money is exiting the economy. Everywhere deflation happens, it is usually worse than inflation. Nobody invests in a deflating economy since the odds are terrible. Looking at charts, deflation almost always follows a bubble. Can anyone express the view that the US stock market is not in a bubble but growing organically instead?
Let's wait who is proven right, only time will tell, and we just be patiently😅