What if we have a recession and high inflation at the same time?

What does the Fed do about interest rates in that case?
What happens to the stock market?
It seems like the politicians and the bankers have run out of options, but perhaps I am mistaken?

Attached: recession_30pc.png (687x459, 39.72K)

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en.wikipedia.org/wiki/Stagflation
currentmarketvaluation.com/models/buffett-indicator.php
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Recession and high inflation don't really go together particularly in the current situation. The "recession" such that it's possible would be there as an attempt to lower inflation

en.wikipedia.org/wiki/Stagflation

It’s called stagflation newfags and it’s exactly what’s going to happen. I warned you all in 2019.

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A massive decline in the average quality of life. They do not see this is a problem.

So you buy gold/silver, get a potential 20% return if you sold at the right time

Ditch FANG and miss out on a 100% or more return. Idkkk user

>Doesn’t know macroeconomics
>Doesn’t know a cycle transition

The FAANGs and tech will crash another 50% or so before crabbing for the rest of the decade (see pic related for the S&P500 during the last inflationary cycle in 70’s for details)
The keys in the name ‘Growth’ vs ‘Value’ stocks. What do you think happens to growth stocks when there no growth?
Value stocks pay dividends, money moves there to keep pace with inflation.
Gold/silver and precious metals is because currency is being devalued to shit.
The Fed can’t pull a Vlocker. Real rates will remain negative, which means eventually they’ll blink and revert to more QE because they have no other choice.
Once gold and silver runs next it’s not coming back down.

Pic related

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Jews print mountains of money, then shove them inside their hairy anuses instead of pretending to invest in something.

You’re in a slide thread

this is already happening now and will continue to happen in any case. inflation will cool down in services as people cut back. inflation for products, materials, gas, etc is due to limited supply not high demand.

Yes but only the in demand sectors will see wages increasing with inflation. That cements in an inflationary spiral (as costs can’t go back down)
The rest however can’t keep up with inflation. The business models that worked throughout the previous 40 year disinflation cycle won’t work anymore. Debt becomes expensive, businesses go bust, people lose jobs = recession/depression i.e. prices stay high but demand drops as no one can afford them.
Violence, unrest, food and energy shortages throughout the world.

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>So you buy gold/silver, get a potential 20% return if you sold at the right time
If you still have a job. That's the tricky part.

You didn’t go to college.

> What if we have a recession and high inflation at the same time?

Stagflation

> What does the Fed do about interest rates in that case?

Increase the interest rates.

> What happens to the stock market?

Crashes and stagnates.

Technical analysis is not very useful.

Fundamental analysis can show where value is and if prices are too high. Two major ratios to look at are total market cap vs GDP (Buffett Indicator), and total market cap vs shareholder's equity.

Pic related, total market cap vs GDP.

currentmarketvaluation.com/models/buffett-indicator.php

Attached: Buffett_Indicator.png (1112x557, 380.51K)

One day for no reason at all...

Any Forums told me that true hyper-inflation requires a recession first. It's the coming out of the recession that floods the markets with excess dollars, which will feed on itself and spiral into runaway hyper inflation.

Fuck you're stupid. Look up the definition of recession.

The reason the stock market is so incredibly over-levered and the reason housing prices are shooting to the moon is foreign investors are currently flocking to the dollar from areas of geopolitical instability. Europe has decided to stop buy Russian crude, and that will redirect oil from China to Europe. Combine that with a middle eastern arab spring 2.0 and you end up with China getting cut off of food imports and energy simultaniously. About the only way that doesn't happen is if they successfully station a few million soldiers in Iran and provide the area with security and food, which won't happen.

In any fixed economy there's only so much ROI or Profit to go around; in a 20T GDP economy there's maybe 4-6T of profit to be had. The worlds demographics are turning upside down for the most part, too many old boomers too few youngin's. 2\3rds of the worlds ROI is located in the Millenial and Gen X in the US. So what you have is a competition by foreign investors to convert the US into a financial vassal state, squeeze every last ounce of ROI out of those generations through charm school mindfuckery and labor market games, and in doing so break the US government so you can put in some kind of new world hegemon aka the WEF.

This is why you have populism and an impending blow-out of Democrats later this year and the America First agenda is focusing that ROI on having the next generation as all this bullshit is depressing fertility rates.

So what you are going to see is later this year the dollar is going to crank to the moon along with food, housing, and energy prices. Initially energy exports will stop from the US, everyone elses gas will go upto $200-300 a barrel the US will hit about $70 with the west coast somewhere inbetween as there are no pipelines going there.

so when will inflation cool off?

Hyper inflation is a virtually impossible situation It generally only happens in communist countries that destroy their economy and refuse to end their communist polices or, and is more often the case, it's caused by a country that conquers another country. Weimar hyperinflated due to being controlled by the victors.

> It's the coming out of the recession that floods the markets with excess dollars

As economies expand, inflation becomes less likely as there is now more products and services being sold relative to the money supply.

Most forms of inflation, such as the ones we're experiencing now, are caused by supply and demand fluctuations.