My portfolio is a split between stocks, bonds, gold, and some crypto.
Over the last week, everything is down a fair amount since the Fed announcement about raising rates to fight inflation.
Stocks, gold, and crypto have all been touted as inflation-hedges, while cash has no possible upside versus inflation, yet cash is out-performing all of them lately.
The only thing I can figure is the market thinks the Fed will be able to tame inflation soon, so cash will benefit at the expense of everything else. Or is it just when there's enough fear in the market, people just sell everything and ask questions later?
I think it shows that predicting what the markets will do is a fool's game. Inflation is the financial boogeyman right now, but cash is the best-performing asset at the same time ¯\_(ツ)_/¯
Submitted January 10, 2022 at 11:12AM by twodegreesbelow https://ift.tt/3FcGI1S
