PPRuNe Forums - View Single Post - Merged: Is the worst of the Global Financial Crisis behind us?
Old 11th Feb 2010, 19:46
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breakfastburrito
 
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Originally Posted by Gnadenburg
What if we end up in an high inflation environment?
Gnad's that is the trillion dollar question. Japanese style (debt) deflation or (money printing) hyperinflation. Cogent arguments can be made for both scenarios, but it can only go one way, a binary choice. Every investor needs to take a side. There is no ability to sit on the fence.
Having said that, if you pick (incorrectly) hyperinflation & use leverage, there is a much larger risk of going bust in a deflationary environment that having parked cash in an inflationary world.
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