If you like them you can read other letters, in particular older letters. The letters for the later part of the 1970s are especially instructive in terms of what is it like to live in an inflationary regime.
Buffett is one of the few people that have "seen it all", from deflationary 30s, war 40s, greatest 50s, cultural 60s, inflationary 70s, capitalist 80s, excessive 90s, normal then excessive again 00s, deflationary 10s and whatever the 20s will be.
Well that was the response ("this time we'll do it differently"; Bernanke's "how to make sure 'it' doesn't happen here"), and the jury is still out on the consequences, IMHO.
I'm going by CPI and other similar measures around the world. Almost all US yearly CPI prints have been below 3%, with a small exception of late 2011.
Also, if (some) corporate profits stay on the same trajectory and interest rates fall, those stocks will rally like crazy. Interest rates are the most important prices in any market.
Comments
If you like them you can read other letters, in particular older letters. The letters for the later part of the 1970s are especially instructive in terms of what is it like to live in an inflationary regime.
Buffett is one of the few people that have "seen it all", from deflationary 30s, war 40s, greatest 50s, cultural 60s, inflationary 70s, capitalist 80s, excessive 90s, normal then excessive again 00s, deflationary 10s and whatever the 20s will be.
Interesting that you describe the 10s as deflationary when there was a large amount of monetary and asset inflation.
Well that was the response ("this time we'll do it differently"; Bernanke's "how to make sure 'it' doesn't happen here"), and the jury is still out on the consequences, IMHO.
I'm going by CPI and other similar measures around the world. Almost all US yearly CPI prints have been below 3%, with a small exception of late 2011.
Also, if (some) corporate profits stay on the same trajectory and interest rates fall, those stocks will rally like crazy. Interest rates are the most important prices in any market.
The roaring 20s last century came about after a global pandemic
Um and a world war?
The Great War predated (and may have been a large factor in causing) the 1918-19 pandemic.
War on drugs and war on terror have been waged worldwide for at least two decades
And before a crash