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-- -- -- getting weaker cash is no longer a photo of haven for investors still worried it puts him -- the work.
Less fat let's ask -- marking the presence of veteran officer of Merck mutual -- -- she axle.
Good morning and -- I should mention by the way you're also the author of sustainable wealth and that's what we need to do is we need to sustain wealth right now.
How do we do that if we even have any money yet there is no real -- and that's.
But exactly when a world where it is no such thing anyone to -- asset and we have been advocating that investors may want to take -- diversified approach to something as mundane as cat.
And you just -- it from from the Europe picked yet that some people save it and have hyper inflation something we don't have the inflation.
I actually think it is possible that both camps are right -- we have both of these market forces battle out and investors are caught in the middle.
And -- ultimately what it means is that investors should only put the money at risk that they can afford to lose.
I'm all this money printing is who -- -- certain assets out of -- gold.
And right now we have a bubble developing an equity markets do you really want to participate is not the question is can you afford to participate can you afford to lose that money.
And so if you cannot afford it you may want to be more on the safe site.
Problem is there's no such thing as a -- -- anymore and what we advocating his baskets of currencies are currencies and -- take a lot so that you can spread your risk.
Safe it is not be that by the at least that is -- have -- vacation as the dollar may be on the continued pressure.
Okay so what.
Let's address that for a second safe haven based -- have trillion dollars sitting.
On the sidelines and cash some people are choosing to put that money market accounts some people are trees choosing to put that in treasuries.
What about the concept of old detect the treasury inflation protected securities so that we do protect against inflation in this country.
Is that a worthwhile investment.
It is if you believe that it reported CPI inflation is really going to protect -- purchasing power.
And ask any Social Security or recipient whose payment is tied to CPI.
Whether -- purchasing power has been stable in recent yet.
Odds -- that note this CPI make a certain things.
But not the cost of an increased health care for example -- a lot of things that have become anything that you cannot import from Asia has become much more expensive than what the CPI reflects.
And as a resides and we -- -- may give you some protection but right now the -- -- -- spread between the treasury bonds and these -- securities him mentioning.
Is less than 2% that's less than 2% that's less than -- but it is wants it to be the Federal Reserve -- -- what's happened.
More inflation not just a little bit more but substantially law I'm in order to bail out all of those who have that and they're working very hard.
Sure let me ask you this here currency expert you see what's happening in the currency markets all of the rattling of the cage that occurred yesterday.
About whether or not the dollar will remain the reserve currency for things like oil.
What talking about change that occurred could occur a decade from now.
Why is this adding to the weakness in the US dollar and does this government need to stand up and -- We support a strong dollar -- could that actually heard.
By the us government should just say it they should pursue policies that support a strong dollar and that's been a problem this decade.
But we've been continuing to say that we want the strong dollar but the policy that you want to week that saw.
If you look at what the Federal Reserve dusted by treasury bonds by -- -- backed securities we -- all excited about the low interest rates beat him houses right now.
But the flip side of that is that these securities are now intentionally overvalued.
So any rational investors would not touch those securities let go elsewhere and it's not just the far enough that may not violent at anymore it's also US domestic investors.
If you want to be properly rewarded but -- risk you're taking you don't want to buy security that's artificially inflated in price.
And that in my view is the main driver behind a weaker dollar right now.
And sure the reflection you saw with with things like commodity potentially -- other currencies.
That's just -- reflection of the psychology out -- That's not going to happen overnight but there is more nervousness out Denton evidences that precisely because -- -- the US government wants to get that we -- thought out.
Just quickly how does translate for the consumer.
For the US consumer who's not a big player in the stock market.
When the consumer is caught in the middle if you have a lot of that stem inflation bails you out that we had dot might -- -- -- -- life find a real problem is that anybody who is saving who's doing the prudent thing.
Is really am taking a short -- -- As the dollar weakens -- coaching staff and how gets eroded thank you very sophisticated you can handle it he can do a basket of currencies you can spread -- around.
But if you do the old -- what used to be prudent thing.
Just hold a cash and and treasuries and I think securities in our view -- purchasing power gets eroded and your retirement is by no means safe anymore.
Action -- -- chief investment officer with Merck mutual funds.
Not the most uplifting news but it's honest and we'll take it thanks so much --
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