> It doesn't make sense. I tell my friends, either things correct in a large way or we're going to be eating $50 cheeseburgers.
Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works.
Thanks for the link, I'll have a read. From the abstract, it clearly references only hedge funds and swap traders in the study. Most speculative markets get in trouble when retail gets involved.
> Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works.
My point is that current asset prices only make sense relative to an $50 cheeseburger at current prices, not that inflation cannot occur and cheeseburgers won't be $50 in the future. Again, I don't have the answer. Wish I did. Wouldn't be reading HN at work but building golf courses :).
See here for example: https://www.bankofcanada.ca/wp-content/uploads/2015/11/wp201...
> It doesn't make sense. I tell my friends, either things correct in a large way or we're going to be eating $50 cheeseburgers.
Why not? My parents paid 50c for a cheeseburger in their youth and now I pay $5. What doesn't make sense about inflation? It is the expected way in which our market works.