Currently, nearly $8 trillion is stored in "money market funds."
Historically, this money was raised, accumulated, and held during periods of quantitative tightening. Then, during each period of quantitative easing, this capital was used to purchase assets such as stocks, bonds, and metals (gold and silver).
In simple terms: During a recession, all asset prices are very low, and $7 trillion in new funds will be used to buy assets.
This again proves that the saying "the rich get richer" is incorrect. A new saying should be "those who understand macroeconomic decisions have the best opportunity to buy all assets at the lowest prices and make themselves wealthy in the next tightening cycle."
Or, in our usual words, "those who understand can get rich, those who don't understand will achieve nothing."
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Currently, nearly $8 trillion is stored in "money market funds."
Historically, this money was raised, accumulated, and held during periods of quantitative tightening. Then, during each period of quantitative easing, this capital was used to purchase assets such as stocks, bonds, and metals (gold and silver).
In simple terms:
During a recession, all asset prices are very low, and $7 trillion in new funds will be used to buy assets.
This again proves that the saying "the rich get richer" is incorrect. A new saying should be "those who understand macroeconomic decisions have the best opportunity to buy all assets at the lowest prices and make themselves wealthy in the next tightening cycle."
Or, in our usual words, "those who understand can get rich, those who don't understand will achieve nothing."