Guys, pls explain to me why the following:
Why if inflation is higher than expectations it has a positive effect on cash and real estate?
Above expected inflation is good for cash and real estate. Property values rise and interest rates rise, which is good for cash.
You’re talking about that zero-year duration stuff, ain’tcha?
Rising interest rates are bad for cash and real estate in certain circumstances. Cash can also mean fixed rate paper. If you hold short term then it is good. You can capture the rising rates. If you hold long term it is bad because you are locked in at old rates.
And highr rates mean mean higher cap rates for real estate which lowers valuation. And higher financing costs.
I’m pretty sure that if it’s long-term it ain’t cash.
LOL
Bitcoin can be used as cash!