at this stage.
Trade war will bring short term pain, but mid to longer term gain.
Inflation dilutes debt, raises the (nominal) GDP, wage, and even (real) living standards. Moderate inflation tends to propel investment inflows, which creates real jobs and raises real wages.
How to ride an inflation up cycle?
- Buy real asset
- Buy top growth stocks
- Take controllable debt while you can - your debt loads will be effectively smaller while inflation takes hold
- Reduce cash holding (it loses value quickly)
- Reduce bond exposure, except for TIPS
- Reduce exposure to value stocks
Lastly, spend more money, enjoy life :-)
