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MoneyNews.com Wealth Report Editor Sean Hyman on the potential risk of inflation and how investors can profit from it.
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With not a good day for the markets or the -- for that matter all three indexes closing in the red.
I'm renewed concerns about QE3.
And Spain's budget plan the good news though it how -- the S&P NASDAQ ending the third quarter.
With gains here to weigh in shine -- -- trader and editor of money news ultimate wealth report to get -- -- -- -- you wanna markets where rat.
And -- to be here you know I think that the market -- continue to head higher for a time I do think that Q we will continue to push markets higher they probably want to -- -- for the economy.
No we will see pull -- not always gotten this this past week and I think that will continue we could be a -- a bit deeper pullback before you'll hire.
And that's just normal so I don't think that's necessarily QE being ineffective and not working still.
I just think that's a natural dynamic of the market before it hits higher.
Lot as economists and strategists were out the last couple of days saying that the economic data released just this week.
Mainly the big GDP revision downward revision to about one point 3% for the latest quarter suggest that QE3 might have not been such a bad idea with you we think.
Well it's you know -- never is very effective at bringing down unemployment creating jobs.
Helping the economy to -- -- It is -- good at inflating asset prices is -- -- taking commodities let's especially commodities.
And it's it's also good at taking stocks up for a period for a time so basically what the Central Bank is done is just offered up a little bit of a time little bit of a time window.
For politicians to get their fiscal act together -- to get it right.
It's also good QE.
For inflating the debt away -- that part of the -- -- goal.
It is the -- and -- lady tries to.
The paid.
Debt back with cheaper dollars so they continually -- that the value of the dollar.
That's why you see a lot of asset prices go up so it's one of the dynamics of why gas keeps going -- keeps the one out that's sort thing is is dilution of the dollar takes more -- about those very same thing.
Especially the -- of some of your investment -- -- -- along some commodity names for us.
Portfolio Presley arrow picture box.
One of them you wanna telling us an -- let me talk -- Yet Petrobras are -- -- it's all Devon Energy.
Vale do there are several of of not -- that that was subscribers and right now.
That are commodity based stock picks that would do well in the in the face of inflation because -- coming to the dollar dilution is is going to continue to inflation will continue to head higher and these assets of some assets it will benefit the most.
To help fend off inflation from people's personal portfolios.
We haven't seen interest rates move up sharply though so wouldn't you know a lot of people are warning about this this threat of inflation happen DC it it.
Coming in -- as a process sort of slowly or will it be.
You know a sharp hit on the economy and will be seating interest rates rising sharply.
I think for now interest rates will remain low and for -- for the foreseeable future but -- will come a point where inflation.
We'll get bad enough to where they'll have to Jack up interest rates as it probably fairly steep cliff.
-- to -- that inflation -- -- while politicians really honestly like inflation even though they don't admitted.
What they don't like is hyperinflation because if you were to get that.
The people would riot and throw the politicians that be out of office so they can't was they can't have and stamp for hyperinflation so that would do everything that they can T to try to squelch that.
You know there's a recent survey that found 70% of top investors expect a financial -- nominee next year are we in.
An environment where hyper inflation is a threat and could trigger that's you agree with as findings.
I think increase inflation is -- and I think that's gonna continue to paints the the consumer.
Not sure we're gonna have a hyper inflation yet because you really have to get the velocity of money going.
Before you have that happen and we haven't seen that start take effect just.
Thank you Sean -- -- analysis they keep a kick off this.
