'Aggressively' hold gold & real estate as Fed's QE is a 'failed experiment,' says Danielle DiMartino Booth : https://www.kitco.com/news/2021-10-27/-Aggressively-hold-gold-real-estate-as-Fed-s-QE-is-a-failed-experiment-says-Danielle-DiMartino-Booth.html
My Comment : Fed cannot fight "stag" and "flation" simultaneously. I personally think RE is also in a huge bubble
Excerpt:
And with higher-than-expected inflation and slower growth, Fed's options are quite limited, DiMartino Booth added. Raising rates could slow the economy down, while keeping rates too low could trigger sticky inflation.
"They're boxed in because the economy is already slowing. They either tighten, or they don't. Both are policy errors. We had a flash recession. It lasted all of two months. So they've kept policy inappropriately too easy for much too long," she stated.
Giving trillions of dollars directly to households is what really hyper-charged inflation over the last 19 months.
"What distinguishes the great financial crisis is that the Fed was able to go at it alone in 2009, 2010, 2011. This time, they needed fiscal money as well. And we're heading into midterm elections. And I think Washington's dysfunctionality is on full display. And there's certainly no reason the GOP would want to help the economy headed into 2022 and the November midterm elections. So the Fed might not be able to go at it alone if the economy does slow."
Based on the current economic environment, the Fed could be forced into tightening, including raising interest rates.
In light of all of this, DiMartino Booth advises holding gold, real estate, and municipal bonds. "I am aggressively holding onto my gold. I do like the fact that I have a lot of real estate. And my municipal bonds have treated me very well," she said.