September 14, 2023 Grandpa checks in
Last night, the much-anticipated CPI was released, which was slightly higher than market expectations. However, the core inflation data performed well, so the market did not react much to this small negative news. The overall trend of the US stock market was stable last night, which was a shot in the arm for the recent market, so the big cake continued to stand firm at 26,000 points. From the perspective of the options market, the demand for put options has also weakened recently. After experiencing multiple rebounds, the risk of the market continuing to break down will be reduced. If it is going to fall, the main force will definitely come unexpectedly.
Apple released the iPhone 15 these two days, and the familiar picture began to spread in social media again. The change in the purchasing power of the pancake reflects the depreciation of the purchasing power of the FA currency. The most intuitive feeling of ordinary people is that a breakfast has increased from a few cents, 1-2 yuan to dozens of yuan now. In the early years, the ten thousand yuan households were celebrities in the village, but now a million yuan is not considered to be well-off. What's more uncomfortable is that the increase in wages is far behind the soaring price level. This is also one of the reasons why Li Jiaqi was criticized recently. In the past few decades, the savings mentality of the Chinese people has become the biggest victim under this monetary model. When people gradually realized it, they began to make some changes.
In order to resist the dilution of cash by inflation, everyone started to manage their finances and investments, but this is not a simple matter. Illegal fund-raising, P2P, gambling, local dogs, thunder, etc., it seems that there is always one waiting for you. Not only did you fail to achieve the goal of outperforming inflation, but you also lost your principal. In fact, in the long run, the best way is to find the right assets with long-term appreciation, convert available cash flow into assets, and be friends with time. Recently, the price of gold has exceeded 600 yuan/gram, which has attracted attention. In fact, the purchasing power of the US dollar for gold has also been declining at a visible rate after the collapse of the Bretton Woods system. What everyone sees is the rise in gold, but in fact it is the decline in the purchasing power of currency.
Why do we recommend everyone to invest in crypto assets, especially Bitcoin or Ethereum? On the one hand, of course, it is because it will rise, and on the other hand, it is because long-term investment can fundamentally resist the damage of inflation to us. In the short term, prices will indeed fluctuate. If leverage and frequent operations are added, the fluctuations will be more severe, but in the long run, Bitcoin is the only emerging asset with a yield far exceeding inflation. Indeed, because it is an emerging asset, the price paid is that the risk is higher than that of US stocks and much higher than that of gold, but I don’t think this is a reason for us not to choose it. On the contrary, it is a very necessary choice for some people. Therefore, when we do short-term, we must have a long-term mindset, which will be very helpful for grasping the rhythm.
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