INFLATION
When the
difference in inflation between countries is large enough markets will reward
the low inflation country and punish the high inflation country with changes in
currency exchange!
DYI: Since 2020 the U.S. has experienced – we
all know so well – massive inflation!
The difference between Swiss cumulative inflation since 2019 is a mere
7% as compared to the U.S. 23%! As the
months turned into years institutions and individuals holding dollars shifted a
portion of their dollar asset into Swiss Francs thus increasing the Swiss Franc
compared to the U.S. dollar.
As long as the U.S. Federal government continues its drunken spending –
by both political parties – assume continued inflation far greater than the
somber Swiss. Over time the dollar will
sink and the Franc will increase in a saw tooth manner upwards. Also expect the Swiss to fight the rise of
the Franc against the dollar for fear of pissing off U.S. officials. All the Swiss will be able to do is slow the
Franc’s increase not wanting to jeopardize their well earned reputation for ultra
low inflation.
Look into the Permanent Portfolio Fund PRPFX.
DYI: Since 2020 the U.S. has experienced – we
all know so well – massive inflation!
The difference between Swiss cumulative inflation since 2019 is a mere
7% as compared to the U.S. 23%! As the
months turned into years institutions and individuals holding dollars shifted a
portion of their dollar asset into Swiss Francs thus increasing the Swiss Franc
compared to the U.S. dollar.
As long as the U.S. Federal government continues its drunken spending –
by both political parties – assume continued inflation far greater than the
somber Swiss. Over time the dollar will
sink and the Franc will increase in a saw tooth manner upwards. Also expect the Swiss to fight the rise of
the Franc against the dollar for fear of pissing off U.S. officials. All the Swiss will be able to do is slow the
Franc’s increase not wanting to jeopardize their well earned reputation for ultra
low inflation.
Look into the Permanent Portfolio Fund PRPFX.
- Gold - 20%
- Silver - 5%
- Swiss Franc Assets - 10%
- Real Estate
- Natural Resource Stocks - 15%
- Aggressive Growth Stocks - 15%
- Dollar Assets - 35%
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