Red Lake Madsen Mine Ltd LRTNF

RE:RE:RE:RE:RE:RE:We are heading in to an inflationary cycle

[kirk15]

many tech stocks come under the heading of "growth stocks", and they get valued at what in normal cases is considered an unreal valuation. Then consider what gets used to rein in inflation and what the outcome will be, you saw US inflation reported this morning on a high not seen since 1982 at 7%. We have heard from political hacks that higher inflation rates are short term, and a result of supply chain bottlenecks due to Covid, if that were the case then higher rates of inflation would not have to be addressed by CB's, as stetched over a period of time its just a hiccough. Inflation adds to the cost of living, so were it to be a longer term condition, CB's primary tool used is higher interest rates achieved through moving up the discount rate which affects o/n money, but also taper the amount of asset purchases they have been doing. The reason they do this is to slow down growth, slow down purchasing and expenditures, so growth stocks get hit because the assumed forecasts are having to change. This ends up being more long winded than I wanted, but I tried to take you through the steps, if my explanation leaves you confused in some way feel free to inbox me so as not to clutter up the PGM board.