Originally Posted by
Lizard
Maybe true for Europe and the US, but will it be true for Hamilton, NZ? Are (hyper)inflation and or deflation necessarily (or even likely to be) global phenomena. Seems to me we could see deflation followed by inflation in both Europe and NZ - but that NZ could be delayed by 2-5 years.... so in terms of investment strategy, NZD (and AUD and other Asian currencies) might well be fine to hold while Europe inflates and then swap the trade.
Maybe also for now the neutral NZD period while Europe deflates a while longer, when holding NZ/AU/Asian equities might beat holding cash and fixed interest for a bit, until deflation squeeze hits here because we too run out of fiscal headroom to stimulate locally against global weakness without creating excessive debt.
Thoughts?