Reply to "What Stocks do you like right now?"

Ah, there's no causative effective between investment of assets to infllation.  There may be a coincidental correlation but i wouldn't use it to gamble on.  In essence, me and you taking our cash out and stuffing it under our matress is different then when the central banks around the world go doing the same thing.

The shrinking of hte money supply, usually leads to a deflationary scenario since there's less money going around, thereby making it worth more.  This causes asset classes to fall against the value of money since money's now worth more.

Heavy inflation comes from big governmetn deficits and huge spendings where the US just starts issuing more and more debt.  It gets exacerbated when we have a huge debt and go into recession, causing the central bank to be accommodative.   (roughly simplistic, but it's the gist of it!)

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