Returning after a period of rest, reflection, responsibilities and above all in times of quarantine, I have decided to share again with the whole community content related to finance and the world of financial markets, in this way educating them and keeping them informed with what is happening in the world economy, so that they are also aware and know what action to take according to the criteria and research of each one to safeguard their monetary funds.
Quantitative Flexibilization
This coming week is undoubtedly going to be very important in the movements that we are going to see in the market and the month of April is key, especially with what is happening, according to what the "Bank of America" says, which speaks of the quantitative easing approved by the US Congress, which means a program that provides people with money and the aversion to unemployment, which means that inflation will crush the dollar, a process where the inflation we are currently seeing will be somewhat brief, as I believe, however, in the long term if it is true that we have a tremendous inflation, due to all the monetary policies that are being taken by the most important financial institutions in the world, printing without any control more inorganic money that only increases the debt more which leads to higher inflation.
Bitcoin which had a somewhat volatile week, the markets have been quite unstable, however, despite everything Bitcoin has not been doing badly, we are not very far from the price levels at which we started the year, so, it has remained relatively strong throughout this crisis that we are living.
The financial decoupling
What's happening is something called decoupling, which is typical of financial recessions, in which the government and the federal reserve, in conjunction with your country's central bank, are supposed to act hand in hand with fiscal incentives, such as lowering taxes, lowering interest rates to inject money into the economy and make it supposedly flow.
The problem of decoupling
These actions have several drawbacks, which are:
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Most of the liquidity does not reach the economy, but is retained and goes to investment funds and Banks that have made bad bets in the Stock Market, Wall Street, in different financial instruments, which of course make that money evaporate.
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It is not only a matter of reactivating the economy but there is an isolation imposed by the sanitary conditions that exist and that makes us feel good, but with the forced decoupling, the economy weakens, there is nothing that fiscal policy and monetary policies can do to combat this pandemic situation, which obviously leads to make things much more complicated, then the money helicopters will arrive, but you will not see what to buy, for this reason this is inflationary in the long term.
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We have seen that the government has taken various measures to control speculation which causes market players to have no incentive to sell at controlled prices, that has never worked and what it does is bring about greater scarcity.
Some recommendations
People should be prepared at home, in my opinion, they should at least have enough food, medicine and food and of course, the assets that fight inflation which are gold, silver and Bitcoin, as the last case also of this whole list of recurrent assets and with a very new technology but that without any doubt in the short time that has been with us is one of the assets or the best performing asset in the last decade.
For this reason we must be very careful when making our investments, without a doubt there are opportunities in all crises and this is no exception, in my opinion neither fiscal nor monetary policy will work very well, so let's be very attentive, I will be progressively publishing on how to invest in these times of crisis and get out of this situation successfully.
Gold and Bitcoin as a refuge
In my past publications I have talked a lot about Gold and Bitcoin as safe haven assets, in times where the economy is in crisis the favorite asset to safeguard our money is Gold, in the last decade Bitcoin has also shown these conditions, becoming as I said one of the highest yielding assets, for this reason in my opinion acquiring Bitcoin and Gold is an excellent move, this as previous to the publications I will make, however, I want to make clear that this is only my perception of things and it is not a direct investment recommendation.
Finally I recommend you to go through the project of which I am Co-Founder called @erarium, if you want to know more about the financial world, trading courses, money management and investment strategies in @erarium we offer it, besides also help you to earn some free coins and encourage savings and compound interest.
I am Co-founder of the @erarium project, in this community we offer training processes in trading, finance and economic management. Consider joining our official Discord by clicking HERE.
