Our economies are managed by central banks that target a certain inflation, this is mostly a narrative used to excuse the exacerbated market fluctuations caused by media and hype that try to influence the less experienced investor. In reality, policy always comes too late.
These cycles and misdirection of crowds make for great investment opportunities once you start to understand the gullibility of a large group of traders. Whether it's foreign exchange rates, commodities, crypto, stocks or bonds. All are a game of information and misdirection.
The current inflation and states of the commodity/housing markets are no exception, especially since the start of QE, the economy has become state funded and has diverted away from traditional capitalism a long time ago. But what's mostly causing the current bubble if you ask me, is people's over enthousiasm into starting food delivery shops and the online business world.
90% of startups fail, mostly due to timing or bad execution, a business requires a certain perceived value and that value needs to be communicated properly in a world that has become very noisy. This means that if a small town goes from 3 sushi delivery places to 15 at some point there is oversaturation and this is exactly what has happened especially thanks to the hefty corona stimulus. This all means we are overdue a big correction across multiple asset classes.
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