this post was submitted on 15 Apr 2024
609 points (98.1% liked)
Political Memes
5075 readers
4263 users here now
Welcome to politcal memes!
These are our rules:
Be civil
Jokes are okay, but don’t intentionally harass or disturb any member of our community. Sexism, racism and bigotry are not allowed. Good faith argumentation only. No posts discouraging people to vote or shaming people for voting.
No misinformation
Don’t post any intentional misinformation. When asked by mods, provide sources for any claims you make.
Posts should be memes
Random pictures do not qualify as memes. Relevance to politics is required.
No bots, spam or self-promotion
Follow instance rules, ask for your bot to be allowed on this community.
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Thanks! I’ll edit my post with this knowledge in mind.
Kudos to you for not doubling down!
You were not mistaken though. Read my comment about net debtors benefitting from inflation.
Your general idea of inflation being bad for those who hold money is correct. Stocks and real estate don't counteract inflation, they are just less affected by it.
Wealthy people are net lenders because they usually hold more bonds than they borrow. That means they are negatively affected by inflation.
This isn't true. Wealthy people do not hold more bonds than they issue. Berkshire Hathaway for example has less than 1% of their funds invested in bonds
The mantra is that bonds are part of diverse portfolio but this for people who are investing in retirement funds.
Bonds are often held for this purpose. They are a useful for an income steam but they are not where the majority of anyone's investments are held because they are not fast growers. Furthermore, bonds are a hedge against inflation because they grow faster when inflation is high which obliterates your entire argument.
This is incorrect and harmful to people who read it. See below:
https://www.investopedia.com/articles/bonds/09/bond-market-interest-rates.asp
Still not true. I Bonds.
Do not trust anyone who uses investopedia as a primary source on what or how to invest. It's magazine level content. The equivalency here is using popular science as a reference for how to engineer a bridge.