can you guess what the most valuable car company in the world is from this map ?
https://image.nostr.build/743b1cd35449c74a411e9956cd507aac3b56767919a02046832093e8723b22e5.png
that's right it's Tesl...
Another thing signaling investor retardation is the bond market. Why? Because it shows they *actually believe the government numbers on inflation*.
If the government is printing money to the tune of 7-8% of GDP *with no commensurate increase in economic productivity* (which we certainly haven't had), that's going to give you a ballpark FLOOR for inflation.
Bonds across the entire spread are then money losers - yet we are at record issuance which means people ARE buying them. If investors were smart the yields would have to shoot up to above 8% to actually make any real money. And yes they also have trouble grasping the difference between real and nominal gains even though it is literally a freshman year econ 101 concept.
That kind of moment of sanity - bond yields radically spiking - has occasionally happened (e.g. early 1980s) but it is rare.
If the government is printing money to the tune of 7-8% of GDP *with no commensurate increase in economic productivity* (which we certainly haven't had), that's going to give you a ballpark FLOOR for inflation.
Bonds across the entire spread are then money losers - yet we are at record issuance which means people ARE buying them. If investors were smart the yields would have to shoot up to above 8% to actually make any real money. And yes they also have trouble grasping the difference between real and nominal gains even though it is literally a freshman year econ 101 concept.
That kind of moment of sanity - bond yields radically spiking - has occasionally happened (e.g. early 1980s) but it is rare.