tag:blogger.com,1999:blog-8152901575140311047.post2197626979620003712..comments2024-03-29T03:33:47.317-04:00Comments on Musings on Markets: Inflation, deflation and investingAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-8152901575140311047.post-17544287528186094012014-04-22T21:37:19.583-04:002014-04-22T21:37:19.583-04:00Vip Investment Club - 100% Hourly For 72 Hours
Vip...Vip Investment Club - 100% Hourly For 72 Hours<br />Vip Investment Club is a long term high yield private program, backed up by Forex market trading and investing in various funds and activities. Profits from these investments are used to enhance our program and increase its stability for the long term. <br />Invest Here <br />http://www.vipinvestment.net<br />Investment Insurance<br />http://www.payinghyiponline.com/vipinvestment.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-47286844199210897052013-08-15T06:35:13.657-04:002013-08-15T06:35:13.657-04:00Recent years have seen quantity surveyors become t...Recent years have seen <a href="http://dkpp.com.au/blog/importance-of-quantity-surveyors-for-public-sector-organisations-in-the-prevaling-recession/" rel="nofollow">quantity surveyors</a> become the key advisers on construction and development strategy; but they must continue to reinvent themselves to remain at the topJust Friendshttps://www.blogger.com/profile/07589706184013009684noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-6409408814453705002010-11-02T13:49:18.221-04:002010-11-02T13:49:18.221-04:00Great Article!! One other reason inflation is not ...Great Article!! One other reason inflation is not good for stocks is the fact that bonds and stocks are also competing investment alternatives. When interest rates go high, the earning yields for stocks (inverse of P/E) should go up in order to stay competitive with bonds. This results in a lower P/E for stocks.Unknownhttps://www.blogger.com/profile/09693665262127072678noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-81437150201143429732010-10-20T19:44:14.040-04:002010-10-20T19:44:14.040-04:00Thanks for such insightful posts.
I have a questio...Thanks for such insightful posts.<br />I have a question regarding your comment re the tax benefits of a depreciation shield. Yes higher, depreciation (investment in fixed assets) can have tax advantages but how does that differ under an inflation/deflation scenario?<br />I am trying to get my head around a finance leasing business with high levels of leverage and investment in fixed assets. Yes the high leverage is relatively good under an inflation scenario as financing is with old dollars but does inflation/deflation really even matter (along with the tax consequences) if you are leasing out equipment on fixed term profiles?<br />Thanks in advance<br />JonathanJohn Galthttps://www.blogger.com/profile/08449366871530201189noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27390491951824614802010-10-19T16:40:59.611-04:002010-10-19T16:40:59.611-04:00http://www.benzinga.com/trading-ideas/long-ideas/1...http://www.benzinga.com/trading-ideas/long-ideas/10/10/532990/bernanke-admits-deflation<br /><br />Poor Bernanke has short ideas for long term!tunck.https://www.blogger.com/profile/12292470100436978744noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-69312261055492062852010-10-19T14:11:52.689-04:002010-10-19T14:11:52.689-04:00The fact that current inflation remains low does n...The fact that current inflation remains low does not mean that people have stopped worrying about future inflation. If a significant subset of the market believes that inflation will be a problem in the future, the price of gold will go up.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-12624416710074321042010-10-19T10:28:33.933-04:002010-10-19T10:28:33.933-04:00"Is gold a potential hedge against inflation?..."Is gold a potential hedge against inflation? Yes, but so are many other productive real assets and collectibles"<br /><br />Have we had inflation or deflation for 3 years, if we have deflation risk in this period so why the gold price is increasing?<br /><br />thanks,tunck.https://www.blogger.com/profile/12292470100436978744noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-80439926266303735122010-10-19T06:47:02.952-04:002010-10-19T06:47:02.952-04:00I think this fixation with gold is a little unheal...I think this fixation with gold is a little unhealthy. Is gold a potential hedge against inflation? Yes, but so are many other productive real assets and collectibles. If gold is your asset of choice, go for it, but it should never be your only weapon.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-33344621187581673662010-10-17T18:19:16.481-04:002010-10-17T18:19:16.481-04:00Thanks for the insightful article. I just want to ...Thanks for the insightful article. I just want to ask you something. You suggest to invest in bonds if the deflation would be the future trend. However, if the government already pulled down the interest of bonds in subprime mortgage price. Therefore, there is little room for FRB in controlling interest rate. You think investing in bond is still viable option in this situation?Hyunsoo in Leipzighttps://www.blogger.com/profile/08260906773559065891noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27632856062980228392010-10-17T16:08:55.355-04:002010-10-17T16:08:55.355-04:00Thanks for the article but,why you didn't ment...Thanks for the article but,why you didn't mention gold hedge against inflation and deflation. Let's admit gold is one of the most effective hedge nowadays.I am not sure it is a foe or friend of financial industry but i know it is a friend of savers.tunck.https://www.blogger.com/profile/12292470100436978744noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-62929601795293450472010-10-16T18:00:52.893-04:002010-10-16T18:00:52.893-04:00An exellent post!
As always, you always make the r...An exellent post!<br />As always, you always make the readers stick to the basics and enable us to think in a fundamental way that prevents any deviations from not conforming to the first principles. <br />Thanksdonlsan04https://www.blogger.com/profile/14474928338972605513noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-25146696562920899612010-10-15T09:49:48.666-04:002010-10-15T09:49:48.666-04:00Here in Brazil we were used to have a high inflati...Here in Brazil we were used to have a high inflation rate before 1994. <br /><br />I was young but I got my college in Economics, and my finale paper was about comparing the investment returns before and after 94.<br /><br />As conclusion, I could see exactly what you said:<br /><br />high inflation - fixed assets, treasury bonds, gold and other low risk asset had more return<br /><br />low inflation - financial assets did much better.<br /><br />We didn't have deflation here yet, and I don't see it for a while, but I reckon that will be the same results as we had with lower inflation.<br /><br />Great article.<br /><br />@FKempfUnknownhttps://www.blogger.com/profile/01309638991425873865noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-35766807724153487782010-10-14T13:42:30.546-04:002010-10-14T13:42:30.546-04:00"I would first shift more of my portfolio fro..."I would first shift more of my portfolio from financial assets to real assets."<br /><br />U said it!<br /><br />Coupled with dollar going down, no wonder, gold is being used by many countries as a hedging tool.<br /><br />This is what our fore-fathers used to say abt gold.<br /><br />Ultimately and evn in stock market, cmpanies dealing in Roti (agri and agri-based), kapda (textile) and makaan (real estate and related industry) will be winning hands down.<br /><br />Because, faced with resource crunch, even technology and entertainment industry will become "discretionary"<br /><br />Back to stone age, did u say?doctorgeetahttps://www.blogger.com/profile/07258712947081895199noreply@blogger.com